Voluntary financial disclosure by Australian life insurers promoting investment‐related contracts is predicted to be related to fees, funds under management, investment risk and return, liability risk and marketing costs factors. The decision to voluntarily disclose various forms of financial data in documents promoting investment‐related contracts was studied during 1989‐90. Life insurance managers providing financial disclosures tend to: (a) charge lower fees, (b) hold larger funds under management, (c) are exposed to higher investment risk, (d) are exposed to lower liability risk and (e) bear lower marketing costs. This evidence supports Mayers and Smiths'  positive theory of insurance‐related contracting.
|Journal||Accounting and Finance|
|Number of pages||20|
|Publication status||Published - 1995|