Alternative pension liability disclosure and the effect on credit evaluation: An experiment.

Key Points

• Investigate how different presentations of pension liability data affect credit evaluations.
• Evaluated four sets of loan applications based on alternative pension disclosure methods.
• Assessed factors including interest rates, maximum loan amounts, and repayment probabilities.
• Variations in pension disclosure significantly influenced interest rates and loan amounts offered.
• Higher leverage related to increased interest rates and lower maximum loan amounts.