Forward-looking MD&A disclosures and the information environment

• Autores: Volkan Muslu, Suresh Radhakrishnan, K. R. Subramanyam, Dongkuk Lim
• Localización: Management science: journal of the Institute for operations research and the management sciences, ISSN 0025-1909, Vol. 61, Nº. 5 (May 2015), 2015, págs. 931-948
• Idioma: inglés
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• Dialnet Métricas: 4 Citas
• Resumen

  • We use computer-intensive techniques to study the informational properties of forward-looking disclosures in the management discussion and analysis (MD&A) sections of 10-K filings made with the Securities and Exchange Commission. We find that firms make more forward-looking MD&A disclosures when their stock prices have lower informational efficiency, i.e., when their stock prices poorly reflect future earnings information. The greater levels of forward-looking MD&A disclosures help improve yet are unable to completely mitigate the lower informational efficiency of stock prices for such firms. These findings are stronger for operations-related forward-looking disclosures, disclosures that are made prior to 2000, and disclosures made by loss firms.