A Study Of The Listed Company Management Performance Attribution And Its Share-Price Effect

The quality of listed companies’ information disclosure determines the efficiency of capital market resource allocation to a certain extent. Compared with the quantitative digital information, descriptive language information expression form is more flexible. Especially for The listed company management how to explain Changes in the company’s performance. So managers rely on information superiority to provides a chink in the wall for self-serving act. Foreign related research has proved that there are manipulation of performance attribution in listed companies management. Since domestic relative research in this field is few, the manipulation of descriptive language information management and how to regulate this kind of behavior is very worth studying problem in the securities market in our country. This paper bases on related research at home and abroad. First, it analyzes the theory basis of the formation of management performance attribution. Then it use the empirical research method to verify the management performance attribution and its stock price effect. In empirical study, this paper sample included year2013120manufacturing companies listed on Shanghai stock exchange, which can be divided into half blue-chip group, half underperformance group. Firstly, this paper use content analysis for word for word reading of the annual report of listed companies "management discussion and analysis" part of the information. Which coding the information of attribute-on according to the classification of internal attribution of increased performance, increased performance external attribution, internal attribution of declining performance and external attribution of declining performance. This paper use descriptive statistics and T test statistical method of examining management performance attribution tendency. The study found that both blue-chip or low quality companies, there are performance attribution of self-interest behavior when the managers explain the operating performance of company. It means managers boil good performance down to internal operations by management, while the poor performance cause of the change of macro environment, such as external uncontrollable factors. On this basis, this paper adopts event study method to further research management performance attribution share price effect. Studies have shown that internal attribution of blue-chip company on stock prices have a certain degree of support, while low quality of the company’s external attribution will slow falling share prices to a certain extent. Management self-serving performance attribution behavior increases the the difficulty to predict the future development trend of enterprise performance and register identify the management ability, which also increases transaction costs and damages to the capital market efficiency. At the end of the paper, I propose some corrective measures based on shareholders and potential investors, certified public accountants, the government and the company internal four angles for further perfecting the mechanism of listed company management performance attribution, which means great significance of improving reliability information transparency and trustworthiness, and guiding the management behavior, specification development of capital market, the improvement of the system of information disclosure of listed companies.