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

By Artyom Durnev, C. Mangen. Journal of Accounting & Economics, 2019

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Abstract We explore whether disclosures in the Management Discussion & Analysis (MDA 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.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/37a469933e32e645f3d03fbf0658cb98356b7d9e