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Earnings manipulation and similarity of annual report disclosure: Evid by Yonghai Wang, Qingyun Ye et al

The Management Discussion and Analysis (MD&A) section is an important component of a company's annual report, where the management team provides a textual analysis of the company's performance for investors. Due to the existence of agency problems, management is likely to mask any earnings manipulation in order to maximise their salary, build a corporate empire or obtain more financing, which will reduce the reliability of the company's financial information. Utilising 13,679 Chinese A-share listed companies from 2008 to 2020, this study examines the correlation between management earnings manipulation and annual report MD&A similarity. We find that earnings manipulation leads to increased MD&A similarity in order to reduce the transmission of useful information and thus stymie investors. As such, we recommend that regulatory authorities should monitor the level of similarity and validity of MD&A disclosures in addition to the authenticity of numerical fi

Form 8K After Silicon Valley Bank Insolvency

Hundreds of public companies have filed current reports on Form 8 K since SVB became insolvent and was taken over by the FDIC. The disclosures made to date have been primarily voluntary filings, made to comply with SEC’s Regulation FD, and designed to alert security holders

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