The risk-relevance of non-GAAP earnings

被引:1
|
作者
Heflin, Frank [1 ]
Kolev, Kalin S. [2 ]
Whipple, Benjamin [1 ]
机构
[1] Univ Georgia, Terry Coll Business, 610 South Lumpkin St, Athens, GA 30605 USA
[2] CUNY, Zicklin Sch Business, Baruch Coll, 55 Lexington Ave 24th St, New York, NY 10010 USA
关键词
Non-GAAP earnings; Non-GAAP exclusions; Special items; Other item exclusions; Equity risk; Risk-relevance; PRO FORMA EARNINGS; PREDICTIVE-VALUE; INFORMATION; MANAGERS; PRICES; STREET; SECURITIZATIONS; VOLATILITY; COMPONENTS; REFLECT;
D O I
10.1007/s11142-022-09725-w
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We study the risk-relevance of non-GAAP earnings. Risk is an important earnings attribute in valuation models, and the FASB's conceptual framework identifies providing information about risk as a primary objective for earnings. Although prior research addresses the value-relevance of non-GAAP earnings, researchers have paid little attention to their risk-relevance. We find that non-GAAP adjustments yield an earnings number that isolates the more risk-relevant components of earnings. Excluded earnings components, however, contain some, albeit less, information about risk. Thus, although non-GAAP earnings can help investors prioritize the more versus less risk-relevant components of earnings, non-GAAP earnings are potentially most informative about risk when used together with GAAP earnings.
引用
收藏
页码:493 / 524
页数:32
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