A research on the correlation between MD&A Disclosure and Financial Performance

Hui Yun Li*, Lin Zhang

*Corresponding author for this work

    Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

    Abstract

    In early 2012, Shanghai Stock Exchange of China promulgated No. 5 Memorandum on Annual Reports of Listed Companies for 2011 - Requirements on Preparation of Management Discussion and Analysis (the 'Requirements'), further specifying the way of disclosing some contents, and further stressing the importance of disclosure of management discussion and analysis ('MD&A') in light of standards. This proves that MD&A is receiving the growing attention of the regulator. This paper created quality assessment indicators for MD&A disclosure according to the Requirements, selected 220 manufacturing companies listed on Shanghai Stock Exchange as the research sample and developed a regression model. Through collection, sorting and analysis of sample data of 2010 and 2011, it was found that the quality of MD&A disclosure is positively correlated with the financial performance of the current period, and can be used to forecast future financial performance.

    Original languageEnglish
    Title of host publicationInternational Conference on Management Science and Engineering - Annual Conference Proceedings
    EditorsHua Lan, Yu-Hong Yang
    PublisherIEEE Computer Society
    Pages1359-1364
    Number of pages6
    ISBN (Electronic)9781479953752
    DOIs
    Publication statusPublished - 17 Oct 2014
    Event21th Annual International Conference on Management Science and Engineering, ICMSE 2014 - Helsinki, Finland
    Duration: 17 Aug 201419 Aug 2014

    Publication series

    NameInternational Conference on Management Science and Engineering - Annual Conference Proceedings
    ISSN (Print)2155-1847

    Conference

    Conference21th Annual International Conference on Management Science and Engineering, ICMSE 2014
    Country/TerritoryFinland
    CityHelsinki
    Period17/08/1419/08/14

    Keywords

    • correlation
    • financial performance
    • management discussion and analysis
    • quality assessment indicator system

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