Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 8, 2018 erstellt
Beschreibung:
We explore the association between earnings and price for 400 IFRS adopting firms from eight countries (Australia, France, Germany, Hong Kong, Italy, Singapore, Sweden and the UK) in their annual reports for the years 2005, 2008, 2011 and 2013 (1,577 firm-years). We find no difference in the earnings/price association for firms that present non-GAAP earnings and those that do not. However, we find significant differences based on the non-GAAP measures presented. The disclosure of non-GAAP earnings provides value relevant information for firms that provide underlying operating (also EBIT and EBITDA) earnings but not for firms disclosing underlying net profit. For the first group the adjusting items are not associated with price, providing support for their exclusion by managers. The evidence points to non-GAAP earnings being informative, but only for firms basing adjustments and reconciliations on operating profit