Title: The value relevance of voluntary European embedded value disclosures: evidence from UK life insurance companies

Authors: Muhammad Almezweq; Guy Liu

Addresses: Department of Economics and Finance, Brunel University, Uxbridge, London UB8 3PH, UK. ' Department of Economics and Finance, Brunel University, Uxbridge, London UB8 3PH, UK

Abstract: This study examines the value relevance of the voluntary embedded value (EV) disclosures by publicly listed British life insurers pre and post the mandatory adoption of International Financial Reporting Standards (IFRS) in 2005. It provides evidence for the first time that the voluntary European embedded value (EEV) and market consistent embedded value (MCEV) disclosures are value relevant and have incremental information content over and above the statutory accounting information. It also shows that the changes in the methods by which EV numbers are calculated do not have any impact on the value relevance of EV disclosures.

Keywords: embedded value; UK life insurance; value relevance; Europe; voluntary disclosure; United Kingdom; International Financial Reporting Standards; IFRS; accounting information.

DOI: 10.1504/IJAF.2012.051003

International Journal of Accounting and Finance, 2012 Vol.3 No.4, pp.343 - 366

Accepted: 12 Jul 2012
Published online: 13 Dec 2012 *

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