Forward-Looking MD&A Disclosures and the Information Environment

Volkan Muslu (), Suresh Radhakrishnan (), K. R. Subramanyam () and Dongkuk Lim ()
Additional contact information
Volkan Muslu: Bauer College of Business, University of Houston, Houston, Texas 77004
Suresh Radhakrishnan: Jindal School of Management, University of Texas at Dallas, Richardson, Texas 75080
K. R. Subramanyam: Marshall School of Business, University of Southern California, Los Angeles, California 90089; and Indian School of Business, Hyderabad 5000032, India
Dongkuk Lim: College of Business, Idaho State University, Pocatello, Idaho 83201

Management Science, 2015, vol. 61, issue 5, 931-948

Abstract: 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.Data, as supplemental material, are available at http://dx.doi.org/10.1287/mnsc.2014.1921 . This paper was accepted by Mary Barth, accounting .

Keywords: disclosure; 10-K filings; forward looking (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (48)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.2014.1921 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:61:y:2015:i:5:p:931-948

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().