The Efficiency And Quality Of MD&A Of Listed Companies

The efficiency and quality of information is very important to the development of Chinese security market as it's a new market which is immature. After the exploration of Enron event, the whole word is beginning to pay attention to the adequacy and accuracy. And "Management's Discussion and Analysis" becomes one of the focus of attention because it contains both financial and non-financial information, and be disclosed through both qualitative and quantitative methods. China introduced this concept in 2001, after that it continuously improves relative content and provisions, this performance shows that Chinese regulatory authorities attaches much importance to "Management's Discussion and Analysis "."Management's Discussion and Analysis" in annual report reflects how a listed company's management understands the present and future of the firm, after they studied the current status of the operation and financial situation has been the development of internal and external environment and carry out study tours, the company obtained an understanding of present and future. Disclose this information in a fully, unbiased manner to investors, can effectively reduce the information asymmetry, and help investors to find out the real market value of a company, and then make the right decision, the sound operation of the securities will also benefit from the information with high quality. That's why I chose this area as my study object.After reading these papers of both domestic and international researchers, I find that domestic study about "Management's Discussion and Analysis" is much less that that of other country, and the way of study are primarily focused on the international comparison and the influencing factor of it, the research of its quality and effectiveness is very rare. What's more, China's real state industry is developing rapidly in recent years, both home and aboard is concerned about it, and the people's live hood is closely related to that, so its healthy development also requires a better quality of information disclosure as a basis. Therefore, I selected companies listed in the real estate industry in China in 2007 as a research sample, mainly to discuss the "Management's Discussion and Analysis" information disclosure quality and effectiveness.To study this object, I combine the research means of empirical and normative. Normative study includes study of the literature and review of the theoretical basis. Empirical study includes empirical scoring method, modeling hypothesis method, etc., My paper exports the corresponding results through regression analysis showed that the relationship between different variables to arrive at hypothetical judgments.The results show that the disclosure quality of listed companies in real estate industry in 2007 is generally not high, there is lacking in substance winded, can not focus on important area, for the forward-looking information, voluntary information disclosure and asset-related information, related disclosure is not enough. However, there's basically a positive correlation between the disclosure of information and the sample's next phase of the financial performance report is basically a positive correlation, for the excess stock returns, it could also incrementally explain it.In the last part of the article, I firstly introduce the U.S. "Management's Discussion and Analysis " disclosure system by classifying it into different parts,then give some suggestions to Chinese disclosure system from the following five aspects to provide Some of his policy proposals:1. Do a comprehensive, in-depth investigation and analysis about "Management's Discussion and Analysis " disclosure status of Chinese listed companies; 2, Further refine the "Management's Discussion and Analysis " information content, the degree of emphasis, also released the corresponding interpretative guidance; 3, establish the appropriate audit system and the legal system of listed companies to prevent the omission of important information and publishing false information of listed companies; 4, Establish regulations similar to the safe harbor rules, to encourage companies to disclose forward-looking information, targeted voluntary information, and increase the information content of the "Management's Discussion and Analysis".5, Increase efforts to improve the investment environment in the securities market, improve the overall quality of investors, to lay the foundation of the effective disclosure of information.