A Study On Quality Of Forward-looking Text Information Disclosure In MD&A From The Perspective Of Multiple Users

With the intensification of industrial competition and risk, the users ofaccounting information has not satisfied with the content of information disclosed inthe traditional financial reporting model, and their need to the forward-lookingnon-financial information is growing. Because the disclosure of MD&A can meettheir need to non-financial information and forward-looking information, it isregarded as heart and soul of the annual report. Accurate forward-lookinginformation has great strategic significance.As two important users of forward-looking text information disclosure in MD&A,the investors and competitors have a significant impact on the quality of its disclosure.Therefore, the paper starts from the perspective of multiple users. On the basis oftheoretical analysis, the article measures the quality of forward-looking textinformation disclosure in MD&A from the perspective from quantity and qualitydimensions, and using188listed companies in the GEM as samples, it carries out anempirical testing to test the investors and competitors’ influence to the listedcompanies’ quality of forward-looking text information disclosure in MD&A in2011.In the conclusion, according to the result of empirical research, the article put forwardthe relevant policy recommendations combined with China’s actual background toimprove the quality of forward-looking text information disclosure in MD&A.The innovation of this paper is: studying on the quality of forward-looking textinformation disclosure in MD&A from the perspective of multiple users; using textmining techniques to deal with the forward-looking text information in MD&A;establishing an indices system from quantity and quality dimensions to measurethe quality of forward-looking text information disclosure.The study will provideempirical support for the regulatory authorities to improve the disclosurerequirements of forward-looking text information disclosure in MD&A, enhance itsquality and better regulate the forward-looking text information disclosure behaviorof listed companies.