The Effect Of Management Discussion And Analysis Of Information Disclosure

Today, the management discussion and analysis (MD&A) of the position in the periodic reports of listed companies growing is considered to be the most valuable content in the periodic reports, periodic reports of the essence and soul, is an important part of to improve the quality of periodic reports of listed companies."Management’s Discussion and Analysis" is not only a review and evaluation of the operating conditions of the company’s history, also contains forward-looking judgment of the management company’s future development. It offers investors an opportunity, from a management point of view perspective the real situation to some extent, eliminate the problem of information asymmetry between investors and management, improve the quality of listed companies’ information disclosure, to meet the investors and a higher level of relevance of information, accurate decision-making for investors and stock market a good run of great significance. Therefore, this article will Perspective at the "Management’s Discussion and Analysis" disclosure.Reviewing a series of studies by scholars of the MD&A, I found involved in all aspects of the MD&A:the introduction of the MD&A the time of the system earlier, the Foreign research results are very rich. In contrast, domestic scholars in the field explore very scarce, and the contents of the main limitations of the MD&A system of international comparison analysis and the MD&A disclosure of the quality of the impact factor study, articles that exploring disclosure quality and the economic effect are very few able to retrieve, only the Li Chang Qing (2005); Liu Yu Xi (2007); Li Feng Sen, Li Chang Qing (2008) has been working for this theme. Coupled with the GEM market in recent years developed very rapidly, for the majority of investors, investment GEM than the motherboard higher expected rate of return, but also means that investment will face a higher risk. Safeguard the sound development of the GEM, the need for a perfect information disclosure system as a basis. Therefore, we selected the2009companies listed on GEM Annual Report data as the study sample, of the MD&A disclosure of the overall quality and economic effects.Specific way, this article uses a combination of specification and empirical analysis means. The development of the United States the MD&A system’s evolution, the Chinese the MD&A, the system’s status quo and content of domestic and international research literature of the comments and related theoretical basis of the review the use of a specification study’s methods, while the MD&A index of self-build, the MD&A, the overall disclosure quality of the description of sexual regression analysis of the statistical and economic effects of the MD&A disclosure is mainly used empirical research methods.In this article, to explore the effect of the MD&A disclosure, the author has built its MD&A Index in the first, then test the relationship between MD&A index and the changing of EPS,as well as CFFO. The results showed that:the MD&A disclosure of the contents of the overall quality than the average Chinese companies listed on GEM’s2009annual report, concerning historical information, the disclosure is better, taking up larger space, basically realized the goal of companies information disclosure. But the disclosure of forward-looking information were poor, disclosed only the contents of the procedural jargon and boasted of the future, the substantive content of the risk response measures, earnings forecast is almost not mentioned. The forward-looking information disclosure quality does not meet the requirements of the guidelines.The results also prove that GEM listed companies to disclose the MD&A information will help investors to predict future EPS and CFFO changes. The MD&A, information can be eliminated to a certain extent the symmetric problem of investors and the management information, to improve the quality of the periodic reports of listed companies, with the national securities market regulatory authorities to establish and improve the original purpose of the MD&A disclosure system. Study also confirmed that the forward-looking information and forward-looking information in MD&A also helps investors predict the company’s future earnings per share, net operating cash flow changes, and to some extent, the correlation of the forward-looking information stronger, indicating the usefulness of the MD&A, the key is to increase the disclosure of the amount of information, but rather to enhance the quality of disclosure of information. Finally, We integrated the full text of the study conclusions, put forward the future to improve the MD&A system’s Overall disclosure quality.There are three suggestions:first, improve relevant laws and regulations to develop a systematic disclosure guidelines; then to encourage listed companies in the MD&A disclosure more is more related to forward-looking information; Last but not the least, drawing on the "safe harbor" system, the elimination of management worries.