The impact of the SEC's regulation of non-GAAP disclosures

• 成果类型: Article
• 署名作者: Heflin, Frank; Hsu, Charles
• 署名单位: State University System of Florida; Florida State University; Hong Kong University of Science & Technology
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2008.07.002
• 发表日期: 2008
• 关键词: earnings management; information-content; pro forma; prices

摘要

Roles implemented by the U.S. Securities and Exchange Commission in 2003 impose additional disclosure and filing requirements oil firms publicly disclosing non-GAAP earnings. We find the regulations produced (1) modest declines in the frequency of special- and other item exclusions, (2) a decline in exclusion magnitude, (3) a modest decline in the probability disclosed earnings meet or beat forecasts, and (4) a decline in the association between returns and forecast errors. Our results suggest that, while the regulations reduced firms' use of non-GAAP disclosures to improve performance perceptions, they also reduced firms' willingness to use non-GAAP earnings to convey permanent earnings. (C) 2008 Elsevier B.V. All rights reserved.