{"publication_status":"published","language":[{"iso":"eng"}],"main_file_link":[{"url":"https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3415109"}],"page":"65","type":"working_paper","date_updated":"2022-01-06T06:51:28Z","author":[{"full_name":"Müller, Jens","id":"1245","last_name":"Müller","first_name":"Jens"},{"full_name":"Sievers, Sönke","last_name":"Sievers","id":"46447","first_name":"Sönke"},{"full_name":"Mehring, Oliver","id":"36373","last_name":"Mehring","first_name":"Oliver"},{"full_name":"Sofilkanitsch, Christian","last_name":"Sofilkanitsch","first_name":"Christian"}],"abstract":[{"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. ","lang":"eng"}],"status":"public","jel":["H2","M41"],"year":"2019","user_id":"46447","citation":{"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.","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>","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.","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} }","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.","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.","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."},"date_created":"2019-09-04T09:48:44Z","keyword":["Keywords: non-GAAP reporting","restatements","information content of earnings","firm value","overvaluation"],"_id":"13137","title":"Non-GAAP Reporting and Investor Attention: Are Investors Misled by Exclusions of Recurring Expenses from Non-GAAP Earnings before Restatement Announcements?","department":[{"_id":"186"},{"_id":"189"}]}