Are pension contributions a threat to shareholder payouts?

Research output: Contribution to journalArticlepeer-review

Abstract / Description of output

UK companies have been making large contributions to reduce the deficits of their pension funds, and are believed to fund such contributions in part by reducing dividends. Using data from 2003-16, we find little evidence that large deficit-reduction contributions are associated with reductions in regular dividends, though we find some restraint in dividend increases and total payout. Most companies make large contributions when they have healthy cash flows and strong profitability, or inflows from disposals of assets. This suggests that the Pensions Regulator allows companies flexibility regarding the timing of contributions.
Original languageEnglish
Pages (from-to)27-42
Number of pages15
JournalJournal of Corporate Finance
Early online date5 Apr 2019
Publication statusPublished - Oct 2019


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