Can Institutional Investors'Corporate Site Visits Curb Management's Tone Manipulation?Evidence from MD&A Texts of A-Share Listed Companies in Shenzhen Stock Exchange
This study investigates the impact of institutional investors'corporate site visits on management's tone manipulation using data from the management discussion and analysis(MD&A)section of annual reports of publicly traded firms.The findings reveal that institutional investors'corporate site visits significantly mitigate management's tone manipulation,with a greater inhibitory effect observed with higher visit frequency and more participating institutional investors.Institutional investors'corporate site visits can mitigate management's earnings management behaviors,thereby curb tone manipulation.This effect is particularly pronounced for listed companies with low analyst coverage,high financing constraints,and private ownership.This research provides valuable insights for enhancing the quality of information disclosure by listed companies in China.
Institutional InvestorCorporate Site VisitsMD&A TextTone Manipulation
万方数据
