Corporate governance structures, managerial attributes and the accuracy of expected pension contributions

PurposeThis study explores the impact of corporate governance structures and managerial attributes on the accuracy of expected pension contributions mandated by Statement of Financial Accounting Standards (SFAS) 132R.Design/methodology/approachThe authors use regression analysis to examine whether governance structures quality and managerial attributes affect the accuracy of expected contributions. Their sample includes 5,596 firm-year observations over the period 2004-2018.FindingsResults document that expected contributions are consistently lower than actual contributions across the sample period. Findings consistently show that expected pension contributions' accuracy is positively related to board independence and gender diversity at the board and audit committee level, while being negatively associated with CEO-Chairman duality.Research limitations/implicationsPaper does not control for CFO attributes.Practical implicationsThese findings highlight the need for revisiting the disclosure requirements related to expected pension contributions, and the importance of governance structures in safeguarding the integrity of corporate disclosures.Originality/valueThe analysis adds to the scant literature investigating the disclosure requirements related to defined benefit pension plans and post-retirement benefits under SFAS 132R.