The cost-of-equity implications of off-balance sheet pension liabilities

•First study on the cost-of-equity implications of off-balance sheet (OBS) pension liabilities.•OBS pension liabilities are significantly positively associated with ex antecost-of-equity.•Recognized pension liabilities are more associated with ex ante cost-of-equity than OBS pension liabilities.•SFAS 158 is effective in improving the cost-of-equity implications of previously disclosed pension liabilities.