All Journals

Language Teaching Research Quarterly

European Journal of Studies in Management and Business

International Journal of Behavior Studies in Organizations

Studies in Educational Management

New Challenges in Accounting and Finance

Language Testing in Focus: An International Journal

Marketing and Branding Research

Individual Differences in Language Education: An International Journal 

Feedback Research in Second Language 

Management Issues in Healthcare System

Language Teacher Education Research

Artificial Intelligence Knowledge Development

<p style="text-align:justify;">This&nbsp;study investigates the factors that&nbsp;Brazilian companies use to manage their&nbsp;defined benefit plans,&nbsp;specifically the determinants of the three financial&nbsp;actuarial&nbsp;assumptions: discount rate, expected return on assets and&nbsp;compensation growth&nbsp;rate. The focus of this research is the companies listed&nbsp;on the B3 – Brazilian&nbsp;Stock Exchange -&nbsp;that&nbsp;&nbsp;recognized and&nbsp;disclosed, from 2010 to 2017, post-employment benefit characterized as Defined&nbsp;Benefit (DB). The sample containing 296 firm/year&nbsp;was divided into two&nbsp;subgroups considering the firm’s political&nbsp;connections. The results suggest&nbsp;that politically connected companies are&nbsp;less effective in managing the&nbsp;solvency of funds or,&nbsp;according to&nbsp;Kido, Petacchi and Weber&nbsp;(2012)&nbsp;act&nbsp;intentionally to justify the&nbsp;company's financial stress. The year before the&nbsp;elections proved to be the&nbsp;most&nbsp; relevant period of discretion, while the&nbsp;specific year of the&nbsp;electoral election only influences the determination of&nbsp;the actuarial&nbsp;financial premises in politically connected companies and, just&nbsp;like in&nbsp;Naughton, Petacchi and Weber&nbsp;(2015)&nbsp;the manager acts to improve the solvency&nbsp;(reduce the deficit)&nbsp;of the pension fund in these periods. The hypothesis that&nbsp;politically&nbsp;connected companies have an incremental adjustment in&nbsp;actuarial&nbsp;assumptions in electoral years has shown results consistent with&nbsp;the theory&nbsp;suggesting that this group of companies manages the reduction&nbsp;of the actuarial&nbsp;deficit in election times more incisively</p>

mbrq.2020.14.05.pdf

Original Research 

mbrq.2020.14.05.xml

Financial Actuarial Assumptions: Empirical Study of How Brazilian Companies Manage Their Defined Benefit Plans