Do MD&A Disclosures Help Users Interpret Disproportionate Inventory Increases?
研究管理层讨论与分析（MD&A）中关于库存变化的解释能否预测公司未来业绩，发现解释的有利性与未来盈利和销售增长正相关，且未解释的公司业绩介于有利和不利解释之间。
ABSTRACT: This study investigates whether MD&A disclosures have predictive ability for future firm performance in cases of disproportionate inventory increases. Using a sample of 568 manufacturing firms with disproportionate inventory increases, I find that the favorability of explanations for inventory changes in MD&A is positively associated with a firm’s profitability and sales growth in the subsequent three years. I also find that future profitability and sales growth of firms that do not explain disproportionate inventory increases in MD&A fall between those of firms with favorable explanations and firms with unfavorable explanations. These results suggest that the existence and the favorability of MD&A inventory disclosures help users interpret disproportionate inventory increases and predict future firm performance.