Financial statement adequacy and firms' MD&A disclosures
研究发现，当财务报表不够充分时，公司会在管理层讨论与分析（MD&A）中更多地使用非GAAP指标和前瞻性陈述，以提供额外信息。
Abstract Firms are required to provide financial information via the financial statements and the management discussion and analysis (MD&A), a narrative explanation of the financial statements. Our study examines how firms use the MD&A channel when their financial statement channel is inadequate. We focus on two textual attributes of the MD&A: non‐GAAP disclosure and forward‐looking statements. We find that firms with less adequate financial statements discuss non‐GAAP measures more and provide a larger number of forward‐looking statements. We then identify the topics, and therefore the context, in which non‐GAAP and forward‐looking disclosures are provided. Our study provides evidence on how managers use the MD&A, a relatively more flexible channel, to provide information when their financial statement channel is less adequate.