As an important development of the traditional annual report based on statements and figures, the management discussion and analysis (MD&A) is expected to enable investors to understand the logic and development trend of the company’s business and finance from a management perspective. In order to regu- late the disclosure behavior of listed companies, the IASB and the China Securities Regulatory Commission (CSRC) successively issued revised rules in 2021.

This paper focuses on MBA students and conducts an experimental study to examine whether logical classification, elaboration, and presentation of homogeneous information related to an integrated disclosure format make it easier for investors to interpret and process the information while holding constant the information disclosure quantity. The results show that integrated information disclosure significantly improves investors’ true understanding of MD&A and promotes investors’ scenario thinking. This positive effect is stronger for companies with deteriorating performance to rebuild investor confidence. Mediation analysis shows that integrated information disclosure significantly improves investors’ understanding of the value creation process of the company’s product business, which in turn increases investors’ trust in MD&A disclosure and their willingness to invest.

This paper has the following contributions: First, it provides practical guidance to the CSRC and the IASB on how to improve MD&A disclosure. This paper shows that integrated information disclosure can improve individual investors’ access to information and make their investment decisions more informed, and it can help the management to boost investor confidence during an economic downturn. Second, it introduces the scenario thinking theory to the disclosure field, providing theoretical support for the innovation and improvement of information disclosure in the capital market. Third, it finds that even without increased information disclosure content, an effective disclosure format itself can improve investor willingness, thereby reducing information asymmetry and financing costs.