Incremental information content of required disclosures contained in...
The Accounting Review
1997
Abstract This paper analyzes seven mandated disclosures contained in Management Discussion and Analysis (MD&A) to assess their information content. Generally, the results show that certain MD&A disclosures, particularly the discussions of future operations and planned capital expenditures, are associated with future (short-term) performance measures and investment decisions, after control- ling for information contained in financial-statement-based ratios. However, the associations with longer-term results are generally not significant. The study illustrates that, in conjunction with the financial statements, the MD&A disclosures, especially prospective disclosures, can assist in assessing firms' future (short-term) prospects.
- DOI
- 10.2308/tar-9706165836
- Volume
- 72 (2)
- Pages
- 285-301
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref