Research Article
Does MD&A Tone Predict R&D Investment? -- The Moderating Effect Based on Financing Constraints
@INPROCEEDINGS{10.4108/eai.9-12-2022.2327589, author={Yifang Li and Xin Zhang}, title={Does MD\&A Tone Predict R\&D Investment? -- The Moderating Effect Based on Financing Constraints}, proceedings={Proceedings of the 4th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2022, December 9-11, 2022, Chongqing, China}, publisher={EAI}, proceedings_a={MSIEID}, year={2023}, month={3}, keywords={md\&a tone; r\&d investment; financing constraints}, doi={10.4108/eai.9-12-2022.2327589} }- Yifang Li
Xin Zhang
Year: 2023
Does MD&A Tone Predict R&D Investment? -- The Moderating Effect Based on Financing Constraints
MSIEID
EAI
DOI: 10.4108/eai.9-12-2022.2327589
Abstract
Management Discussion and Analysis (MD&A), as a supplement to traditional digital information of companies, has yet to form a unified view on the effectiveness of its information increment. Based on the MD&A text information in the annual reports of Shanghai and Shenzhen A-share listed companies from 2010 to 2020, we employ text analysis technology and multivariate linear regression method to examine the association between MD&A tone and R&D investment. The results show that the association between R&D investment and MD&A tone is positive, and this association is moderated by financing constraints. Moreover, the research shows that when the company's debt ratio is high, the negative moderating effect of financing constraints is more significant. We explore the information content of MD&A tone from the perspective of R&D investment, which broadens the scope of information encapsulated by MD&A tone.