Research On The Influence Of MD&A Tone On The Dynamic Adjustment Of Enterprise Capital Structure

China’s economy is in a critical period from a high-speed growth stage to a high-quality development stage,and in the financial field,the leverage level of enterprises is the focus of the government’s economic work.The 2020 Central Economic Work Conference pointed out that "maintaining the macro leverage ratio is basically stable",and China’s macroeconomic goals have undergone a process of adjustment of "deleveraging-stabilizing leverage".At the micro level,the essence of leverage adjustment is the dynamic adjustment of the capital structure of enterprises.Since the deleveraging policy was proposed,the academic community has never stopped discussing the influencing factors of the dynamic adjustment of corporate capital structure.In the existing research,academic research on the dynamic adjustment of capital structure mainly starts from the following two aspects.On the one hand,starting from the external environment in which the enterprise is located,explore the impact of factors such as industrial policy differentiation,policy uncertainty,and changes in the economic environment on capital structure adjustment;On the other hand,starting from the internal characteristics of the enterprise,explore the operational characteristics,managerial characteristics,and the impact of information disclosure on capital structure adjustment.However,from the perspective of information disclosure,there is little literature that takes intonation information as the starting point to explore the impact and mechanism of management discussion and analysis(MD&A)intonation on corporate capital structure adjustment.This thesis selects non-financial enterprises listed on the Shanghai and Shenzhen A-shares of China from 2011 to 2021 as the research object,and uses text analysis method to measure the net MD&A intonation by counting the frequency of positive words and negative words in the MD&A text text of the annual report of a sample company,and explores the impact of MD&A tone on the dynamic adjustment of corporate capital structure.Empirical research has found that,firstly,the MD&A tone has information incremental value,which can reduce information asymmetry,improve the external financing environment of enterprises,and promote dynamic adjustment of enterprise capital structure.Specifically,the more active the MD&A tone,the faster the speed of capital structure adjustment,and this conclusion is valid in both downward and upward adjustment of capital structure enterprises.Second,the mesomeric effect test found that the MD&A tone can speed up the adjustment of capital structure by improving investor confidence in the capital market,in which investor confidence plays a part of the intermediary role.Thirdly,this thesis explores the moderating effect of external auditing,grouping the samples according to whether they have undergone the four major audits for regression.The results show that MD&A intonation has a more significant impact on the dynamic adjustment of corporate capital structure in non four major audit samples,and the four major audits weaken the relationship between the two.This indicates that in companies with weak regulatory environments,management has tone manipulation behavior.Fourthly,further research has found that the MD&A tone increases the likelihood of companies optimizing their capital structure through debt channels.Based on the above research results,this thesis proposes suggestions: enterprises should attach importance to the information disclosure of MD&A texts,improve the quality of information disclosure,and fully leverage the value of MD&A information;At the same time,government departments should further improve the MD&A information disclosure system,increase supervision and management of textual information,and create a good market environment.The research results of this thesis not only enrich the literature on the economic consequences of MD&A intonation and the dynamic adjustment of capital structure,but also provide a new regulatory perspective for relevant government departments on the dynamic adjustment of corporate capital structure.