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The SEC’S MD&A: Does it Meet the Informational Demands of Investors?– A Conceptual Evaluation –


  • Bernd Hüfner


The SEC’s Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is often claimed to provide vital “extra information” for the investment decisions of investors: information that compensates for the reporting weaknesses of financial statements. However, research on the quality of MD&A for investors is rare. In this study I conceptually evaluate whether the SEC’s requirements for MD&A disclosure do in fact provide sufficient information for investors. I use a comprehensive approach for the evaluation by analyzing the extent to which the SEC’s requirements for MD&A disclosure meet investor-oriented reporting principles and contents.

Suggested Citation

  • Bernd Hüfner, 2007. "The SEC’S MD&A: Does it Meet the Informational Demands of Investors?– A Conceptual Evaluation –," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 59(1), pages 58-84, January.
  • Handle: RePEc:sbr:abstra:v:59:y:2007:i:1:p:58-84

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    Fundamental Stock Valuation; Management Reporting; MD&A’s Quality; Investor-oriented Reporting; SEC Regulation;

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting


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