We investigate whether managers strategically choose the tone of non-financial information disclosure based on performance and their motivations. We use 14,400 firm-year MD&As of companies listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange from 2008 to 2019. The results show tone...

We examine whether the analysts can identify the managers’ tone management behavior conveyed through the management discussion and analysis section of corporate annual reports. We find that analysts can effectively identify the managers’ upward tone management behavior and lower their...