Two companies that I have been following recently – Sears Holding and Post NL – have substantial unfunded pension liabilities. Here are a number of articles covering the subject:
“The Value of Control: Implications for Control Premia, Minority Discounts and Voting Share Differentials” by Aswath Damodaran of Stern School of Business, June 2005
“An investment based valuation approach for pension fund cash flows” by Jürg Tobler-Oswald for the Pension Institute, August 2006
“What are corporate pension liabilities?” by Jeremy Bulow in the Quarterly Journal of Economics
“Cash-flow based valuation of pension liabilities” by Hilli, Koivu & Pennanen
“How Does the Market Value Unfunded Pension Liabilities?” by Jeremy I. Bulow, Randall Morck, and
Lawrence Summers, 1987
