Research On The Risk Disclosure In The MD&A Of MY Company’s Financial Reporting Based On Text Analysis

Most of the traditional financial report research methods focus on digital information and its market response.So far,the processing of digital information has evolved into a quite mature analysis mode.But in fact,in the financial report,digital information only occupies a small part of the content,more text information.Combined with the economic reality,with the vigorous implementation of the registration system reform and the vigorous development of big data,information disclosure will become the core direction of the capital market.It is very important for investors to make better use of risk disclosure information.Therefore,the focus of financial report research at home and abroad began to tilt to text information.At present,there have been some empirical studies on the composition structure,readability,complexity,intonation and economic consequences of text information,but the empirical studies will cover up the characteristics of individual text through quantitative analysis of big data of the whole industry,which is an important reason for the case study in this paper.This paper takes MY Company as the research object,based on excellent research at home and abroad,text analysis method,and from the perspective of risk disclosure,selects the financial reports of MY Company in the recent five years(2016-2020),and focuses on the risk disclosure information in the management discussion and analysis(MD&A).The risk disclosure information of management discussion and analysis(the full English name is Management’s Discussion and Analysis,hereinafter referred to as MD&A)is emphatically analyzed.Risk disclosure is not simply reflected in digital information.Whether a company reflects its risk status in a real,comprehensive and objective text is of practical and practical significance for investors to understand and avoid risks.When enterprises are faced with high operational and financial risks,the reality is often not reflected in the text information according to the real situation.Therefore,the research purpose of this paper is to observe whether the management chooses the text information inconsistent with the facts in the process of risk disclosure,so as to influence investors’ understanding of the enterprise in this way and guide them to make investment decisions beneficial to the enterprise.Based on agency theory,information asymmetry theory,signal transmission theory,cognitive behavior theory and Habermas speech validity theory,this paper deeply analyzes how MY company chooses texts to mitigate existing and possible risks under the influence of multiple factors.Through the construction of an analytical framework to explore what standards should be used to measure whether a company has sincerely disclosed risks in information,it is expected to provide investors and regulators with a new perspective to observe enterprises,and also to provide a reference for enterprise managers in the same industry how to disclose risks.