---
_id: '13137'
abstract:
- lang: eng
  text: 'Non-GAAP reporting is under debate as managers may opportunistically inflate
    non-GAAP earnings. By separating firms into groups based on exclusions of recurring
    expenses before material restatements occur this paper investigates whether market
    participants are misled based on ex-ante non-GAAP reporting. The results show
    a decline in cumulative abnormal returns (–11.8% aggressive non-GAAP Reporting
    vs. –2.7% non-aggressive non-GAAP reporting), reduction in overvaluation (–22.18%
    vs. no decline) and losses in the earnings response coefficient (–51.8% vs. no
    significant decline) for firms with prior aggressive non-GAAP reporting. Further,
    we document that investors are less responsive to aggressively reported non-GAAP
    earnings ex-post, indicating that increased attention enhances investor’s ability
    to see through the quality of non-GAAP exclusions. '
author:
- first_name: Jens
  full_name: Müller, Jens
  id: '1245'
  last_name: Müller
- first_name: Sönke
  full_name: Sievers, Sönke
  id: '46447'
  last_name: Sievers
- first_name: Oliver
  full_name: Mehring, Oliver
  id: '36373'
  last_name: Mehring
- first_name: Christian
  full_name: Sofilkanitsch, Christian
  last_name: Sofilkanitsch
citation:
  ama: 'Müller J, Sievers S, Mehring O, Sofilkanitsch C. <i>Non-GAAP Reporting and
    Investor Attention: Are Investors Misled by Exclusions of Recurring Expenses from
    Non-GAAP Earnings before Restatement Announcements?</i>; 2019.'
  apa: 'Müller, J., Sievers, S., Mehring, O., &#38; Sofilkanitsch, C. (2019). <i>Non-GAAP
    Reporting and Investor Attention: Are Investors Misled by Exclusions of Recurring
    Expenses from Non-GAAP Earnings before Restatement Announcements?</i>'
  bibtex: '@book{Müller_Sievers_Mehring_Sofilkanitsch_2019, title={Non-GAAP Reporting
    and Investor Attention: Are Investors Misled by Exclusions of Recurring Expenses
    from Non-GAAP Earnings before Restatement Announcements?}, author={Müller, Jens
    and Sievers, Sönke and Mehring, Oliver and Sofilkanitsch, Christian}, year={2019}
    }'
  chicago: 'Müller, Jens, Sönke Sievers, Oliver Mehring, and Christian Sofilkanitsch.
    <i>Non-GAAP Reporting and Investor Attention: Are Investors Misled by Exclusions
    of Recurring Expenses from Non-GAAP Earnings before Restatement Announcements?</i>,
    2019.'
  ieee: 'J. Müller, S. Sievers, O. Mehring, and C. Sofilkanitsch, <i>Non-GAAP Reporting
    and Investor Attention: Are Investors Misled by Exclusions of Recurring Expenses
    from Non-GAAP Earnings before Restatement Announcements?</i> 2019.'
  mla: 'Müller, Jens, et al. <i>Non-GAAP Reporting and Investor Attention: Are Investors
    Misled by Exclusions of Recurring Expenses from Non-GAAP Earnings before Restatement
    Announcements?</i> 2019.'
  short: 'J. Müller, S. Sievers, O. Mehring, C. Sofilkanitsch, Non-GAAP Reporting
    and Investor Attention: Are Investors Misled by Exclusions of Recurring Expenses
    from Non-GAAP Earnings before Restatement Announcements?, 2019.'
date_created: 2019-09-04T09:48:44Z
date_updated: 2022-01-06T06:51:28Z
department:
- _id: '186'
- _id: '189'
jel:
- H2
- M41
keyword:
- 'Keywords: non-GAAP reporting'
- restatements
- information content of earnings
- firm value
- overvaluation
language:
- iso: eng
main_file_link:
- url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3415109
page: '65'
publication_status: published
status: public
title: 'Non-GAAP Reporting and Investor Attention: Are Investors Misled by Exclusions
  of Recurring Expenses from Non-GAAP Earnings before Restatement Announcements?'
type: working_paper
user_id: '46447'
year: '2019'
...