Leverage manipulation and strategic disclosure: evidence from non-financial information in annual reports based on multimodal machine learning

This study adopts multi-modal machine learning to deeply interpret corporate non-financial information and explore the influence of corporate leverage manipulation on non-financial information disclosure. It is found that enterprises will strategically disclose non-financial information when impleme...

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Main Authors: Jianhua Tan, Yipu Li, Tiancheng Gao, Jun Pan
Format: Article
Language:English
Published: Taylor & Francis Group 2024-07-01
Series:China Journal of Accounting Studies
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/21697213.2023.2300296
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author Jianhua Tan
Yipu Li
Tiancheng Gao
Jun Pan
author_facet Jianhua Tan
Yipu Li
Tiancheng Gao
Jun Pan
author_sort Jianhua Tan
collection DOAJ
description This study adopts multi-modal machine learning to deeply interpret corporate non-financial information and explore the influence of corporate leverage manipulation on non-financial information disclosure. It is found that enterprises will strategically disclose non-financial information when implementing leverage manipulation, that is, the emotion of non-financial information text is more positive, farther away and more difficult. Based on the motivation of leverage manipulation, when enterprises face greater pressure of ‘deleveraging’ policy and stronger financing constraints, enterprises are more inclined to disclose non-financial information strategically when implementing leverage manipulation. Further, the dual motives of leverage manipulation are explored deeply. For the samples with high ‘deleveraging’ policy pressure such as state-owned enterprises and high media attention, and the samples with strong financing constraints such as high short-term debt repayment pressure and high debt financing cost, the positive relationship between leverage manipulation and strategic disclosure of non-financial information is more significant.
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2169-7221
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publishDate 2024-07-01
publisher Taylor & Francis Group
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series China Journal of Accounting Studies
spelling doaj-art-e9c496a844e344a2b87e1d9c3d8590492025-08-20T02:07:01ZengTaylor & Francis GroupChina Journal of Accounting Studies2169-72132169-72212024-07-0112355059010.1080/21697213.2023.2300296Leverage manipulation and strategic disclosure: evidence from non-financial information in annual reports based on multimodal machine learningJianhua Tan0Yipu Li1Tiancheng Gao2Jun Pan3School of Government Audit, Nanjing Audit University, Nanjing, Jiangsu, ChinaSchool of Accounting, Nanjing Audit University, Nanjing, Jiangsu, ChinaFaculty of Business and Economics, University of Melbourne, Victoria, AustraliaSchool of Accounting, Nanjing Audit University, Nanjing, Jiangsu, ChinaThis study adopts multi-modal machine learning to deeply interpret corporate non-financial information and explore the influence of corporate leverage manipulation on non-financial information disclosure. It is found that enterprises will strategically disclose non-financial information when implementing leverage manipulation, that is, the emotion of non-financial information text is more positive, farther away and more difficult. Based on the motivation of leverage manipulation, when enterprises face greater pressure of ‘deleveraging’ policy and stronger financing constraints, enterprises are more inclined to disclose non-financial information strategically when implementing leverage manipulation. Further, the dual motives of leverage manipulation are explored deeply. For the samples with high ‘deleveraging’ policy pressure such as state-owned enterprises and high media attention, and the samples with strong financing constraints such as high short-term debt repayment pressure and high debt financing cost, the positive relationship between leverage manipulation and strategic disclosure of non-financial information is more significant.https://www.tandfonline.com/doi/10.1080/21697213.2023.2300296Leverage manipulationnon-financial informationdisclosure strategyaccounting information quality
spellingShingle Jianhua Tan
Yipu Li
Tiancheng Gao
Jun Pan
Leverage manipulation and strategic disclosure: evidence from non-financial information in annual reports based on multimodal machine learning
China Journal of Accounting Studies
Leverage manipulation
non-financial information
disclosure strategy
accounting information quality
title Leverage manipulation and strategic disclosure: evidence from non-financial information in annual reports based on multimodal machine learning
title_full Leverage manipulation and strategic disclosure: evidence from non-financial information in annual reports based on multimodal machine learning
title_fullStr Leverage manipulation and strategic disclosure: evidence from non-financial information in annual reports based on multimodal machine learning
title_full_unstemmed Leverage manipulation and strategic disclosure: evidence from non-financial information in annual reports based on multimodal machine learning
title_short Leverage manipulation and strategic disclosure: evidence from non-financial information in annual reports based on multimodal machine learning
title_sort leverage manipulation and strategic disclosure evidence from non financial information in annual reports based on multimodal machine learning
topic Leverage manipulation
non-financial information
disclosure strategy
accounting information quality
url https://www.tandfonline.com/doi/10.1080/21697213.2023.2300296
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AT yipuli leveragemanipulationandstrategicdisclosureevidencefromnonfinancialinformationinannualreportsbasedonmultimodalmachinelearning
AT tianchenggao leveragemanipulationandstrategicdisclosureevidencefromnonfinancialinformationinannualreportsbasedonmultimodalmachinelearning
AT junpan leveragemanipulationandstrategicdisclosureevidencefromnonfinancialinformationinannualreportsbasedonmultimodalmachinelearning