Browsing by Author "Mao, Ying"
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Item Managerial self-references in corporate disclosures: an analysis of MD&A(2024) Hao, Yamin; Mao, Ying; Wang, XiaojiaThis study examines strategic pronoun usage in the Management Discussion and Analysis (MD&A) section of annual reports. Through automated textual analysis of a large sample of MD&As, we find that managers of firms with higher earnings growth tend to use more self-inclusive pronouns (e.g., “we,” “us,” and “our”) and fewer self-exclusive words (e.g., “the company”). This self-referential language pattern is associated with a higher likelihood of future financial restatements. Our findings contribute to the literature on corporate narrative disclosures and identify a potential new indicator of financial misstatements. The results have implications for investors, analysts, auditors, and regulators.