Research On The Coupling Of Intonation Emotional Tendency Of MD&A And Surplus Management Behavior Of Listed Companies

The management behavior of earnings in capital market is commonly existed and systemized.However,under the "Severe Censor"context of capital market,the listed companies should be more conscious about manipulating their earnings.Textual information explains and supplements digital information,which characterized in the missing quality of structural financial data---sensibility.Textual information is more flexible in conveying content and its formation,but it still is in the grey area of supervision.With the low budget of transmission and violation cost,it may attract management to "manipulate" and"decorate" the textual information to reduce the public and regulatory pressure on earnings management.Management discussion and analysis(hereinafter referred to as MD&A)is the core content of the listed companies ' financial reports,and it forms the favorable supplement of the digital section.Then,whether textual digits can match earnings information and realize the coupling of digital information and textual information under the motivation of the management.Based on principal-agent theory,signaling theory,information asymmetry theory and behavioral finance theory,this paper studies how the management of listed companies influence the recognition and evaluation of their companies made by the participants of the market through manipulating the emotion of the textual information based on digital information,that is,through MD&A intonation emotional tendency to realizing the cooperation of earnings management behavior.Based on which,the paper will further study whether the earnings management behavior of unprofitable firms would strengthen the influence on MD&A intonation emotional tendency.After that,the paper will continue to discuss whether there are strong or weak differences of the coupling of MD&A intonation emotional tendency and the earnings management behavior.To be specific,the paper uses some non-financial listed companies in Shanghai and Shenzhen Stock Exchanges from 2010 to 2016 as the research object,double analyzing the digital and textual information,and researching the influence on MD&A intonation emotional tendency made by different earnings management behavior through the core content of annual reports of listed companies and boards---MD&A.The result shows that:(1)Accrued project earnings management of listed companies is positively correlated with MD&A intonation emotional tendency,while real activity earnings management of listed companies is negatively correlated with MD&A intonation emotional tendency.(2)The relationship between earnings management behavior and MD&A intonation emotional tendency will be strengthened when listed companies suffer losses in the previous year.(3)Distinguishing different earnings management directions,positive accruals earnings management and positive real activities earnings management are more compatible with MD&A intonation emotional tendency than negative accruals earnings management and negative real activities earnings management.Finally,based on the theoretical analysis and empirical results,this paper puts forward relevant policy recommendations on the strategic disclosure behavior of management using intonation emotional tendency,and expounds the shortcomings and prospects of this study.