Accounting Conservatism And The Quality Of Non-financial Information Disclosure In MD&A

High quality information,an effective tool to alleviate the conflict of interest under the principal-agent relationship,can help to alleviate the information asymmetry,promote the orderly development of the capital market.However,the occurrence of financial restatement which reflects the low level of information quality from the side,is paid more attention by the regulatory authorities and researchers.It derived from the research about the quality of information disclosure of enterprises that has occurred financial restatement.The form of information disclosed by enterprises is divided into financial information and non-financial information.This paper selected the accounting conservatism as an important variable torepresent the quality of financial information and selected non-financial information's text similarity which in Management Discussion and Analysis as substitution variables of non-financial information's quality under the background of financial restatements.After the analysis of relevant literature at home and abroad,the paper utilized information Asymmetry Theory,Decision-making Availability,and Image Management Theory to analyzes the issue that compared with the non-financial restatement companies,how the financial restatement companies' characteristics of the information disclosure quality is.On the basis of this analysis,the paper researched the relationship between the quality of financial information which represented by accounting conservatism and the disclosure quality of non-financial information which extracted from Management discussion and Analysis.After the theoretical analysis,the K-W model and Text Mining Technology are used to measure the accounting conservatism of financial information and the quality of non-financial information,the multivariate linear regression model is used to analyze the correlation between accounting conservatism and non-financial information's quality.The empirical research can help us to get the following conclusion:(1)Compared with non-financial restatement companies,financial restatement companies' level of accounting conservatism is lower;(2)Compared with non-financial restatement companies,financial restatement companies' quality of non-financial information disclosure in MD&A is higher;(3)Due to the pressure of earnings management being discovered,manager has the incentive to disclose non-financial information strategically,which makes the enterprises with low accounting conservatism level show the features of much more non-financial disclosure,smaller text similarity and higher quality of non-financial information.