...Sarah E. McVay; Edgar A. Rodriguez-Vazquez; Sara M. Toynbee ABSTRACT Although the increase in non-GAAP earnings metrics has drawn unfavorable attention from regulators and standard setters, it can provide valuable experience for investors. We investigate whether experience with non-GAAP earnings...

... complexity and managers’ propensity to disclose non-GAAP earnings information. This relation is robust and incremental to common measures of business and linguistic complexity, and the transitory nature of firms’ economic activities. We also find that the quality and informativeness of adjusted earnings...

...Nicholas M. Guest; S. P. Kothari; Robert C. Pozen ABSTRACT CEOs of S&P 500 firms that report high non-GAAP earnings relative to GAAP earnings receive substantial unexplained pay. Crucially, this result remains even after controlling for the level of non-GAAP and GAAP earnings...

...Ahmed Abdel-Meguid; Jared N. Jennings; Kari Joseph Olsen; Mark T. Soliman ABSTRACT Non-GAAP earnings provide managers the flexibility to exclude GAAP items to either produce a more informative performance measure or provide them the ability to opportunistically exclude recurring expenses from non...

...Asher B. Curtis; Sarah E. McVay; Benjamin C. Whipple ABSTRACT We examine the disclosure of non-GAAP earnings information in quarters containing transitory gains to investigate whether the primary motivation for these managers to disclose non-GAAP earnings is to inform or mislead. In this setting...