This paper examines the informativeness of embedded value reporting to stock price by investigating the cross‐sectional variations in life insurers’ price to embedded value ratios. By conducting variance decomposition analysis on a dataset provided by Morgan Stanley, we find that 15 percent (40 percent) of the difference between embedded value and stock price can be explained by growth opportunities and future stock returns in the short (long) run. One‐third and two‐thirds of the unexplained variation are attributed to firm‐ and country‐specific factors, respectively. The above findings provide investors with a better understanding of the value relevance of embedded value reporting.

中文翻译：

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内含价值报告对股票价格的信息性

本文通过调查寿险公司价格与内含价值比率的横截面变化，检验了内含价值报告对股票价格的信息性。通过对Morgan Stanley提供的数据集进行方差分解分析，我们发现内含价值和股价之间的差异的15％（40％）可以用短期（长期）内的增长机会和未来股票收益来解释。无法解释的变化的三分之一和三分之二分别归因于公司特定因素和国家特定因素。以上发现为投资者提供了对内含价值报告的价值相关性的更好理解。