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Identifier to cite or link to this item: https://hdl.handle.net/10086/30368

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Title
Characteristics of Japanese Life Insurance Companies Disclosing Embedded Value
Creator
Creator Name
Tsukahara, Makoto Tsukahara, Makoto
Affiliation
Affiliation Name
Teikyo University
Creator Name
Nishiyama, Kazuhiro Nishiyama, Kazuhiro
Affiliation
Affiliation Name
Teikyo University
Creator Name
Nakamura, Ryosuke Nakamura, Ryosuke
Affiliation
Affiliation Name
University of Tsukuba
Key Word
embedded value
Japanese firm
unregulated disclosure
life insurance accounting
Abstract
In this paper, we analyze the disclosure of Embedded Value (EV) information by Japanese firms with life insurance operations to examine the characteristics that promote unregulated disclosure. As a result of the analysis, we found that companies with a larger solvency-margin ratio (disclosure is required by a statutory solvency standard in Japan) and smaller profits tend to disclose EV. Thus, based on the information required in statutory accounting, companies that perceive that their operating and financial positions are not properly valued voluntarily report EV. This suggests that companies try to eliminate information asymmetry through the disclosure. Furthermore, this result was observed in Japan, where several life insurance companies are structured as mutual companies. This suggests that life insurance companies disclose EV for stakeholders other than shareholders. Therefore, we found the role of EV is different from that described in previous research focusing on value relevance.
Publisher
Management Innovation Research Center, School of Business Administration, Hitotsubashi University Business School
Issued Date
2019-06
Language
English(eng)
Resource Type
technical report
Version Type
VoR
Is Part OfRelation -
Related Title
Working paper ; No. 229
Number of Pages
14
Appears in Collections
Working Paper Series / Management Innovation Research Center
URL
https://hdl.handle.net/10086/30368