Note 2 - Impact on a company's share price of its final salary pension scheme

Published by Nick Griggs on

It is often suggested that investors do not understand defined benefit (DB) pension schemes and therefore do not properly allow for them when assessing the value and risks associated with a particular company.

In conjunction with the Centre for Global Finance at the University of the West of England we have undertaken some research to consider the impact various pension related events have historically had on a company’s share price.

Our second note in the series considers the impact announcements on the use of a Special Purpose Vehicle (SPV) and the closing of the final salary pension scheme to future accrual had on a company’s share price.

Full details of our findings are presented in the following note: