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MD&A Disclosure Quality And Value Correlation

Posted on:2013-07-30Degree:MasterType:Thesis
Country:ChinaCandidate:H Y LiuFull Text:PDF
GTID:2249330377454037Subject:Accounting
Abstract/Summary:PDF Full Text Request
The traditional financial report’s remarkable characteristic is quantitative, historical, limited, highly generalized and standardized. In recent years, the proportion of the non financial, qualitative and forward-looking information disclosure in financial report is growing. MD&A is an important part of this kind of new form financial report, making up for the traditional financial report’s defects, and is beneficial to provide more effective information.MD&A was born in the United States and other mature securities market, wrote by the company management layer. It requires management to summarize the annual operating results, and to discuss and judge the future development of the company, which is reputed to be the highest value information for listed companies to disclose. MD&A not only access investors to information which the traditional report data and statements cannot give, but also enable investors to understand the company from the management perspective.In2002China first introduced this concept. Within a few years, MD&A was constantly improved and standardized. There’s no doubt to MD&A’s academic importance and value. So far, foreign academia has achieved certain research results in the MD&A area, such as information disclosure, information quality and the factors affecting the information quality. Relatively speaking, China’s relevant research results of MD&A are in shortage. Based on the annual reports of the listed companies, adopts normative research and empirical research methods, this thesis study on the Chinese listed company’s MD&A information disclosure level and value correlation. Empirical study shows that, MD&A information has value relevance, and there is a significant correlation between MD&A and the company’s next year’s performance, which help the investors to invest and provide support for investors using MD&A to make decision.This article includes two parts:theoretical and empirical, which is divided into six chapters as follows: In theoretical research, first of all, the research background, significance, methods and main contribution are discussed in the first chapter. The second chapter reviewed the existing research results. Finally, the third chapter elaborated and interpreted this paper by using the economics and management theories.In empirical research, the fourth chapter got a MD&A information disclosure score according to the score framework system, which was used as quantitative dimension scores for MD&A information disclosure level. At the same time, took the evaluation of information disclosure announced by the Shenzhen Stock Exchange as MD&A information disclosure level’s quality perspective. At last, integrated quantity dimensions and quality dimensions as MD&A level of information disclosure, and described statistics analysis. The fifth chapter will put these results in order, and divided them into" high" and" low", and doing grouping inspection and analysis. Then test relation of MD&A and company performance by using the linear regression method. The main conclusions are as follows:(1) The MD&A information disclosure level in year2008-2010are increased year by year, but the overall level is still low, and still have much room to improve, the value of MD&A information disclosure is not given full play. Among them, the historical information disclosure level is superior to the prospective information, and voluntary disclosure level is generally low.(2) The MD&A information disclosure level and the company’s next year performance has significantly positive relationship. MD&A information disclosure level high company’s financial performance is higher than that of MD&A information disclosure level low company. The results show that the MD&A information has value relevance, which provide a favorable guarantee for investors to make decisions, and give empirical support for investors using MD&A for investment decision-making.The main contributions of this paper are the following:(1) Provided the comprehensive inspection of MD&A information disclosure level from multi angles. Take the number angle and the angle of quality’s combinative results as MD&A information disclosure level. In addition, do the comparative analysis with the continuous changes in years.(2) Examined MD&A information disclosure’s value relevance. Empirical analyzed the relation of MD&A information disclosure and the company’s next year’s performance.(3) Attached importance to the advance function. Study the relationship of MD&A and next year’s corporate performanceFinally, the author summarized the empirical results, and put forward the policy proposal to raise MD&A information disclosure level.
Keywords/Search Tags:Management Discussion and Analysis, Information Disclosure, ValueRelevance
PDF Full Text Request
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