MD&A textual evidentiality and the cost of equity capital:A text mining based approach
China has fully implemented the registration system reform centred on information disclosure,and textual evidentiality,as an embodiment of information authenticity and completeness,helps to improve the quality of corporate information disclosure,thus enhancing the efficiency of resource allocation in the capital market.Taking China's A-share listed companies in Shanghai and Shenzhen from 2016 to 2021 as a sample,text mining method is used to measure the textual evidentiality of management discussion and analysis(MD&A),and the impact of MD&A textual evidentiality on the cost of equity capital is explored.The study finds that the higher the degree of MD&A textual evidentiality,the lower the cost of equity capital,and the relationship is more significant in the sample group with lower textual complexity,lower information intermediary tracking,and better external governance environment.The findings enrich and expand the research related to the influencing factors of the cost of equity capital and the incremental value of textual information,and provide a new direction for regulators to build a systematic textual information disclosure system.
management discussion and analysis(MD&A)textual evidentialitycost of equity capitaltext mining
NETL
NSTL
万方数据
