Research On The Relationship Between Linguistic Features Of MD&A And Bank Loans In GEM Enterprises

Nowadays,growth-type enterprises have developed rapidly.Now they have played an indispensable part in accelerating industrial upgrading and economic growth.But at the same time,the growth-type enterprises are faced with the financing dilemma that internal financing cannot fully meet their financing needs,and it’s difficult to issue stocks and bonds.Bank loan financing is a very important source of external funds for growth-type enterprises.GEM enterprises in China mainly come from the high-tech and information industries.The characteristics of asset-light and more attention to innovation make it more difficult for them to get bank loan.Information asymmetry among banks and enterprises is an important reason that restricts the bank loan financing of GEM enterprises.The imperfect information disclosure system of GEM enterprises leads to information asymmetry between them,which makes GEM enterprises subject to financing constraints.The Management Discussion and Analysis(MD&A)part focus on expressing the top management’s views and evaluation of how the enterprise ran in the past year and to predict what to do in the future.Through influencing the company’s information disclosure,the different linguistic features of the company will have different influences on the capacity of the GEM enterprises to get bank loans.This paper bases on some related theories.By using Python,the linguistic features of MD&A can be extracted.They are intelligibility,self-assertion,depth and emotionality.The variable of emotionality is subdivided into positivity and negativity to carry on research.This paper selects listed companies on GEM from 2015 to 2018 as the subject investigated.Then the paper investigates relationship between the linguistic features of MD&A and bank loans by using empirical methods.The results show that the intelligibility,self-assertion,emotionality and positivity of Management Discussion and Analysis are positively correlated with bank loans,while the negativity is negatively correlated with bank loans.Finally,summarize the empirical analysis conclusions and put forward relevant perspectives and suggestions for enterprises,banks and regulators to solve the problem of information disclosure of the Management Discussion and Analysis.