401(K) Matching Contributions in Company Stock: Costs and Benefits for Firms and Workers

  title={401(K) Matching Contributions in Company Stock: Costs and Benefits for Firms and Workers},
  author={J. Brown and N. Liang and Scott J. Weisbenner},
  journal={NBER Working Paper Series},
  • J. Brown, N. Liang, Scott J. Weisbenner
  • Published 2004
  • Business, Economics
  • NBER Working Paper Series
  • This paper examines why some employers provide matching contributions to 401(k) plans in company stock and explores the implications of match policy for employee retirement wealth. Unlike stock option grants to non-executives, a firm's decision to match in company stock does not appear to be strongly correlated with cash flow or with measures of the benefits of aligning incentives of employees and employers. Rather, we find evidence that firms are more likely to provide the match in company… CONTINUE READING
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