Financial statement adequacy and firms' MD&A disclosures
成果类型：
Article
署名作者：
Brown, Stephen V.; Hinson, Lisa A.; Tucker, Jennifer Wu
署名单位：
University of Connecticut; State University System of Florida; University of Florida
刊物名称：
CONTEMPORARY ACCOUNTING RESEARCH
ISSN/ISSBN：
0823-9150
DOI：
10.1111/1911-3846.12919
发表日期：
2024
页码：
126-162
关键词：
摘要：
Firms are required to provide financial information via the financial statements and the management discussion and analysis (MD&A), a narrative explanation of the financial statements. Our study examines how firms use the MD&A channel when their financial statement channel is inadequate. We focus on two textual attributes of the MD&A: non-GAAP disclosure and forward-looking statements. We find that firms with less adequate financial statements discuss non-GAAP measures more and provide a larger number of forward-looking statements. We then identify the topics, and therefore the context, in which non-GAAP and forward-looking disclosures are provided. Our study provides evidence on how managers use the MD&A, a relatively more flexible channel, to provide information when their financial statement channel is less adequate.
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