MD&A Forward-looking Information Disclosure Study

An increasing number of Internet businesses,like Baidu and Jingdong,have created dual ownership structures in the US in recent years.In China,there is a contentious dispute about the justification for dual ownership of listed corporations.The dual equity concept has two drawbacks.On the one hand,it may coordinate the demand for decision-making rights and resolve the paradox that the founding team is losing control due to listed funds;on the other hand,it might result in an incompatibility between the enterprise’s decision-making rights and cash flow rights.Therefore,for external investors who are interested in investing in dual-equity enterprises,the financial report issued by enterprises is the key basis for their choice.With the increase of industry competition and risk,the users of accounting information are not only satisfied with the information content disclosed under the traditional financial reporting model,but also have an increasing demand for forward-looking non-financial information.Since it may fulfill the attention of consumers of accounting information to non-financial information and forward-looking information,the disclosure of management discussion and analysis is regarded as the "heart and soul" of the annual report.The majority of non-financial data is written narrative data,which is less objective and more subjective in and of itself.The dual ownership structure’s singularity also makes the information asymmetry more glaring.The analysis of the MD&A forward-looking information under the dual ownership structure is therefore extremely important from both a theoretical and practical standpoint.The dual ownership arrangement of the business is studied along with case studies and literature study in this essay.To examine the impact of this unique ownership structure on MD&A forward-looking information sharing,signal transmission theory,the principal-agent theory,private cost theory,economic man theory,and principal-agent theory are employed.Next,consider the example company’s foundations.,the establishment of dual-ownership systems,as well as the transmission of predictive data.The quality of merger prospective information disclosure was evaluated by the use of qualitative and quantitative criteria,the average results of the measurement quality of merger prospective information disclosure in the same industry under the same share and right conditions are investigated.Finally,this thesis discusses the influence of the prospective information sharing level of mergers and acquisition under the dual equity structure on the degree of equity integration,the split of two rights,and the example business’ s internal and external oversight.The countermeasures are suggested through the study of the dual ownership structure in order to increase the amount of forward-looking information disclosure under the dual ownership structure more successfully.Through research,it is found that the dual ownership structure has A certain impact on MD &A forward-looking information disclosure,and the level of MD&A forward-looking information disclosure of companies listed with the dual ownership structure is lower than that before the listing.