2016
DOI: 10.1111/acfi.12192
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Level of business insights in the MD&A and nonprofessional investors' judgments

Abstract: This study examines how the level of business insights in a firm's MD&A interacts with its current financial performance to influence nonprofessional investors' judgments. Following the observations and guidance of the ASIC and SEC to define low-and high-insight MD&A, this study finds that lowinsight MD&A, when provided for a negative earnings surprise, increases investors' judgments of the negative earnings persistence and hurts management reputation more than if no MD&A had been provided. High-insight MD&A, … Show more

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Cited by 5 publications
(1 citation statement)
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References 55 publications
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“…Attribution theory is concerned with how an individual or entity explains the causes of an outcome. In the context of the firm and firm strategy, attributions are usually examined with respect to the top management team (TMT; Baginski, Hassell, & Kimbrough, 2004; Bettman & Weitz, 1983; Lee, Peterson, & Tiedens, 2004; W. Li, 2016; Staw, McKechnie, & Puffer, 1983).…”
Section: Theory and Hypotheses Developmentmentioning
confidence: 99%
“…Attribution theory is concerned with how an individual or entity explains the causes of an outcome. In the context of the firm and firm strategy, attributions are usually examined with respect to the top management team (TMT; Baginski, Hassell, & Kimbrough, 2004; Bettman & Weitz, 1983; Lee, Peterson, & Tiedens, 2004; W. Li, 2016; Staw, McKechnie, & Puffer, 1983).…”
Section: Theory and Hypotheses Developmentmentioning
confidence: 99%