The spillover effects of MD&A disclosures for real investment: The role of industry competition

• 成果类型: Article
• 署名作者: Durnev, Art; Mangen, Claudine
• 署名单位: University of Iowa; Concordia University - Canada
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2020.101299
• 发表日期: 2020
• 关键词: product-market competition; INTERNAL CAPITAL-MARKETS; qualitative disclosures; asymmetric information; corporate governance; Textual analysis; RISK; firm; decisions; GLOBALIZATION

摘要

We explore whether disclosures in the Management Discussion & Analysis (MD&A) have spillover effects for investment and investment efficiency, and whether spillover effects vary with competition. We focus on the tone of MD&A disclosures and document that the association between a company's investments and the tone of its rivals' MD&A disclosures is positive. Moreover, this association is moderated by competition; it is stronger when firms operate in industries that have lower entry costs, are larger, and have less substitutable products. We obtain similar results for investment efficiency. Overall, our evidence suggests that MD&A disclosures have spillover effects for investment that can improve investment efficiency, and that spillover effects are moderated by industry competition. (C) 2020 Elsevier B.V. All rights reserved.