CEOs’ secretarial experience and MD&A disclosure quality: a study based on textual analysis

Abstract

ABSTRACT This study provides fresh evidence on the impact of CEOs’ secretarial experience on the quality of Management Discussion and Analysis (MD&A) disclosure. This study finds that in China, CEOs with secretarial experience significantly lead to more MD&A modifications (renew text information timelier). Cross-sectional analyses reveal that the improvement of information disclosure by CEOs with secretarial experience is more prominent for firms without political connection and for CEOs whose birthplace has a stronger cultural environment. Additional test shows that the modification of MD&A provides incremental information for investors and the stock price has a stronger response to the revision made by CEOs with secretarial experience, suggesting investors appreciate CEOs with secretarial experience. Overall, our evidence suggests that CEOs with secretarial experience are more skilled in comprehensive report writing and have stronger ability to provide incremental information.