@article{ART003302930},
author={Dahye Lee and Jaehyung Bark},
title={MD&A Abnormal Description and Management Forecast Bias and Accuracy},
journal={Industry Promotion Research},
issn={2466-1139},
year={2026},
volume={11},
number={1},
pages={47-59},
doi={10.21186/IPR.2026.11.1.047}
TY - JOUR
AU - Dahye Lee
AU - Jaehyung Bark
TI - MD&A Abnormal Description and Management Forecast Bias and Accuracy
JO - Industry Promotion Research
PY - 2026
VL - 11
IS - 1
PB - Industrial Promotion Institute
SP - 47
EP - 59
SN - 2466-1139
AB - This study investigates the impact of abnormal descriptions in Management Discussion and Analysis (MD&A) on management voluntary earnings forecast behavior using text mining techniques. Analyzing listed companies in Korea from 2012 to 2019, the results show that a higher level of abnormal description in MD&A is associated with managers presenting optimistically biased earnings forecasts and lower forecast
accuracy. This implies that managers' behavior of exaggerating or distorting the firm's situation through narrative information in MD&A leads to the qualitative deterioration of quantitative forecast information. This tendency is particularly pronounced in firms with opaque information environments or weak monitoring mechanisms. By demonstrating that the abnormality of qualitative disclosure is an antecedent factor undermining the reliability of quantitative forecast information, this study suggests that investors and regulatory authorities should utilize MD&A text as a crucial indicator for detecting corporate disclosure risks.
KW - MD&A;Abnormal Description;Text Mining;Management Earnings Forecast;Forecast Bias;;Forecast Accuracy
DO - 10.21186/IPR.2026.11.1.047
ER -
Dahye Lee and Jaehyung Bark. (2026). MD&A Abnormal Description and Management Forecast Bias and Accuracy. Industry Promotion Research, 11(1), 47-59.
Dahye Lee and Jaehyung Bark. 2026, "MD&A Abnormal Description and Management Forecast Bias and Accuracy", Industry Promotion Research, vol.11, no.1 pp.47-59. Available from: doi:10.21186/IPR.2026.11.1.047
Dahye Lee, Jaehyung Bark "MD&A Abnormal Description and Management Forecast Bias and Accuracy" Industry Promotion Research 11.1 pp.47-59 (2026) : 47.
Dahye Lee, Jaehyung Bark. MD&A Abnormal Description and Management Forecast Bias and Accuracy. 2026; 11(1), 47-59. Available from: doi:10.21186/IPR.2026.11.1.047
Dahye Lee and Jaehyung Bark. "MD&A Abnormal Description and Management Forecast Bias and Accuracy" Industry Promotion Research 11, no.1 (2026) : 47-59.doi: 10.21186/IPR.2026.11.1.047
Dahye Lee; Jaehyung Bark. MD&A Abnormal Description and Management Forecast Bias and Accuracy. Industry Promotion Research, 11(1), 47-59. doi: 10.21186/IPR.2026.11.1.047
Dahye Lee; Jaehyung Bark. MD&A Abnormal Description and Management Forecast Bias and Accuracy. Industry Promotion Research. 2026; 11(1) 47-59. doi: 10.21186/IPR.2026.11.1.047
Dahye Lee, Jaehyung Bark. MD&A Abnormal Description and Management Forecast Bias and Accuracy. 2026; 11(1), 47-59. Available from: doi:10.21186/IPR.2026.11.1.047
Dahye Lee and Jaehyung Bark. "MD&A Abnormal Description and Management Forecast Bias and Accuracy" Industry Promotion Research 11, no.1 (2026) : 47-59.doi: 10.21186/IPR.2026.11.1.047
