SEC interventions and the frequency and usefulness of non-GAAP financial measures

• 成果类型: Article
• 署名作者: Marques, Ana
• 署名单位: Universidade Nova de Lisboa
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-006-9016-x
• 发表日期: 2006
• 页码: 549-574
• 关键词: pro forma earnings; relative informativeness; disclosure; permanence; STREET

摘要

This paper examines the effect of two Securities and Exchange Commission regulatory interventions related to disclosure of non-GAAP financial measures. There are three main results. First, the probability of disclosure of non-GAAP earnings declines in 2003, but the probability of disclosure of other non-GAAP financial measures has an accelerated decline after the first intervention. Second, all else equal, after Regulation G, investors have a positive market reaction to the disclosure of non-GAAP earnings. Finally, investors react to the adjustments made by I/B/E/S financial analysts as they do to the GAAP surprise, but they do not react to the additional adjustments made by firms.