Research On MD&A Text Masking Under The Perspective Of Impression Management

With the improvement of human beings' ability to discover causes of things happening and development,human beings have also evolved their ability to disguise the truth of events,which is reflected in the lexical and grammatical level of textual language(Dong Hongle and Gu Ping,2000).Compared with accounting data,the manipulation of textual language information is more subtle and less perceptible.According to the theory of impression management,enterprises generate positive influence the judgment of investors about the value of enterprises by manipulating the presentation of information.The MD&A(Management Discussion and Analysis)section of annual report provides information about disclosures of business status,major events or uncertainties that may have a potential impact on the company's finance.While this part provides more forward-looking and analytical information for relevant information users,nonstandardized compilation also inevitably becomes a mechanism for transmitting the company's fixed image,which has become a difficult point for the regulatory layer.Based on the above background,this paper study and discuss the text “masking” behavior of listed companies by text analysis technology,analyze the disclosure quality of MD&A texts,and explore whether listed companies achieve the purpose of impression management through the disguise of non-financial information in annual reports.This paper mainly extracts the relevant sub-indicators that characterize the text features according the authoritative vocabulary method,and obtains the readability value that characterize the disclosure quality through the application of authoritative formulas.What is the motivation for companies to manage their impressions? Has this behavior reached the goal of the writer? Based on the theory of impression management,signal transmission theory and management fuzzy hypothesis,this paper uses the multiple linear regression to reveal the impact of business distress and MD&A disclosure information from the perspective of financial performance and find corporate impression management strategies and deep motivations.This paper further explore the differences in the nature of equity,regional marketization process,regional cultural confidentiality,and the behavior of enterprises in China's special pornography.This paper then studies the effect of the impression management strategy on the subsequent business performance,professional rating and stock returns.The results show that the strategy can not have a positive impact on the real performance and capital market returns,but it can be realize the purpose of improving the securities rating.This study uses text analysis technology to reasearch the impression management behavior of enterprises in the face of business dilemma in the Chinese context.First,from the perspectives of linguistics,psychology,and communication,it examines the textual disguise behavior under the dilemma of enterprises,and expands the research on corporate decision-making behavior under the pressure of external operations.Secondly,it focuses on the heterogeneity of textual disguise behavior under the background of corporate property rights,institutions and culture in the context of China's transitional economy,and expands the previous research on textual disguise behavior based on Western background.Thirdly,it is an attempt to combine interdisciplinary research on information technology and organizational strategic management,it incorporate text analysis technology into traditional research framework of organizational management.