A Stochastic Network Approach for Integrating Pension and Corporate Financial Planning

This paper presents a multi-period stochastic network model for integrating corporate financial and pension planning.

Author(s):

John M. Mulvey

Department of Operations Research and Financial EngineeringBendheim Center for Finance , Princeton University

Bill Pauling

Towers Perrin

Koray D. Simsek

Assistant Professor of Finance, EDHEC Business SchoolResearch Associate, EDHEC Risk and Asset Management Research Centre

Pension planning in the United States has gained importance with the population aging and the growth of retirement accounts. In certain cases, the pension plan assets are several times larger than the value of the company itself (General Motors - Market cap: $19 billion, Pension plan assets: $67 billion, Estimated pension fund deficit: $25 billion - in December 31, 2002; see General Motors Corporation (2003)). Thus, pension investment decisions can have a sizeable impact on a company's long-term financial health. However, pension planning is rarely linked to general corporate planning systems since the domain falls outside traditional corporate budgeting and planning processes.

Type: Working paper
Date: le 04/04/2005
Research Cluster : Finance

See Also

Financial Times ranks EDHEC Executive Education among the Top 10 worldwide
News
- 23-05-2022
EDHEC Business School’s executive education offers rank among the Top 10 globally...
EDHEC partners with VIVATECH 2022 and offers 400 tickets to EDHEC students
News
- 20-05-2022
EDHEC is once again a partner of the unmissable tech event of the year, Viva Technology...
(Invitation) Inauguration of the Management in Innovative Health Chair - May 30, 2022 in Paris
News
- 17-05-2022
Emmanuel Métais, Dean of EDHEC Business School and Christophe Durand, General Manager...
News
- 10-05-2022
Live on YouTube !