SEC interventions and the frequency and usefulness of non-GAAP financial measures
- Ana Marques
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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.
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- SEC interventions and the frequency and usefulness of non-GAAP financial measures
Review of Accounting Studies
Volume 11, Issue 4 , pp 549-574
- Cover Date
- Print ISSN
- Online ISSN
- Kluwer Academic Publishers-Plenum Publishers
- Additional Links
- Non-GAAP financial measures
- Pro forma
- Financial analysts
- Industry Sectors
- Ana Marques (1)
- Author Affiliations
- 1. Faculdade de Economia da Universidade Nova de Lisboa, Palacete Henrique de Mendonça, Rua Marquês da Fronteira, no 20, P-1099-038, Lisbon, Portugal