Corporate Finance

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Weekend Reads for Investors: The Super Bowl Indicator

Weekend Reads

This weekend approximately half of US households will be watching the Denver Broncos and Seattle Seahawks compete in the 48th edition of the National Football League’s Super Bowl. It is typically a time when stock market observers cast seriousness aside and consider what the game’s outcome will mean for equity prices by examining the Super Bowl Indicator. First proposed in 1978, this theory holds that stocks will rise in the coming year if an original NFL franchise wins, but will fall if an old AFL team wins. Read more

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Moral Hazard and Tax Benefits as Drivers of Corporate Pension Plans (Podcast)

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In the first five days of October 2008, large corporate pension funds lost more than $100 billion of pension assets. And at the end of 2011, the aggregate funding shortfall for Fortune 1000 companies amounted to $343 billion. In examining the decisions that defined benefit plan sponsors made, Xuanjuan Chen, Tong Yu, and Ting Zhang argue that moral hazard and tax benefits play a significant role. Read more

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