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Plan-Level and Firm-Level Attributes and Employees' Contributions to 401(k) Plans

Author

Listed:
  • Hsuan-Chi Chen

    (Anderson School of Management, University of New Mexico, U.S.A.)

  • Christine W. Lai

    (Graduate Institute of Management, National Taiwan Normal University, Taiwan)

  • Sheng-Ching Wu

    (Department of Finance, Da-Yeh University, Taiwan)

Abstract

This study examines the determinants of employee contributions to 401(k) plans from the perspective of corporate policy and employer matching. Based on a sample of 756 401(k) plans from 2000 through 2004, we identify several significantly positive factors related to employees' contribution decisions. These factors include the presence of an employer match, especially matching by cash, the firm's growth opportunity, corporate dividend payment, stock return performance, and employees' autonomy to change their investment arbitrarily.

Suggested Citation

  • Hsuan-Chi Chen & Christine W. Lai & Sheng-Ching Wu, 2016. "Plan-Level and Firm-Level Attributes and Employees' Contributions to 401(k) Plans," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 15(1), pages 17-33, June.
    • Handle: RePEc:ijb:journl:v:15:y:2016:i:1:p:17-33
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    401(k) plans; employee contributions; matching policy;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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