Wharton Pension Research Council Working Papers


Jordan Rubin

Document Type

Working Paper

Date of this Version



Many large corporations have recently announced that they are freezing their defined benefit plans, which generally means that no new accruals are permitted. We examine whether the announcement of such pension freezes contribute to company value creation. Results show that freezes do enhance underlying firm value, but market valuation lags in responding to this increase. In this regard, our results corroborate recent work of other researchers who find various market inefficiencies related to defined benefit pensions.


pension freezes, defined benefit pensions, value creation

Working Paper Number


Copyright/Permission Statement

Opinions and errors are solely those of the author and not of the institutions with whom the author is affiliated. © 2007 Pension Research Council. All rights reserved.


The author acknowledges helpful comments from Olivia S. Mitchell and members of the Wharton Research Scholars group. Data were generously provided by the Wharton Data Research Center and the Center for Retirement Research.

Included in

Economics Commons



Date Posted: 17 December 2019