Signal or pressure? Retail investor attention and MD&A quality
研究零售投资者关注如何通过信号传递机制提升中国A股主板公司年报中管理层讨论与分析（MD&A）部分的质量，并发现这种提升能降低股价崩盘风险、改善公司业绩。
Purpose This study examines the impact of retail investor attention on the quality of management discussion and analysis (MD&A) sections in the annual reports of A-share main board companies listed in China, framed within the context of limited attention theory. Design/methodology/approach This study analyzes textual data from the MD&A sections of annual reports and interaction data from the investor-firm interaction platforms of the Shanghai and Shenzhen Stock Exchanges in China, covering 2015–2019. It applies the Continuous Bag of Words (CBOW) model and t-SNE dimensionality reduction technique to construct an indicator for MD&A information content. Additionally, the study assesses the moderating effects of factors, including state ownership, media coverage, regulatory inquiry letters and economic policy uncertainty, on the relationship between retail investor attention and MD&A quality. Findings The results show that retail investor attention significantly enhances MD&A quality, primarily through the mechanism of signal transmission. This relationship is moderated by factors including state ownership, media coverage, regulatory inquiry letters and economic policy uncertainty. Moreover, the study indicates that the positive impact of retail investor attention on MD&A quality significantly reduces the risk of stock price crashes and improves firm performance. Originality/value This study contributes to the literature by providing new insights into the role of retail investor attention in enhancing MD&A disclosure quality, highlighting retail investors as an informal monitoring mechanism that supports capital market stability. It addresses a gap by incorporating limited attention theory into the analysis of retail investor attention and MD&A quality and introduces an innovative approach to measure MD&A information content. The findings offer valuable implications for improving disclosure practices among listed companies.