Earnings Informativeness and Strategic Disclosure: An Empirical Examination of 'Pro Forma' Earnings

By Barbara A. Lougee, Carol A. Marquardt. 2004

416 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/446e2e6eddd9526bea60017f7f9000e70b129d42

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Strategy and Management

Citations in the corpus

Corporate Investments: Learning from Restatements (2009, neutral): “conditions, since these conditions are interrelated within industries (Mitchell and Mulherin [1996]).”
The accounting treatment of intangibles – A critical review of the literature (2011, background): “Lougee and Marquardt (2004) find that rms with less informative financial information are more likely to disclose via press releases than other firms.”
Sec Scrutiny and the Evolution of Non-Gaap Reporting (2008, neutral): “volatility and losses are higher in the later part of the sample, suggesting that, all else equal, non-GAAP earnings use is expected to increase ( Lougee and Marquardt 2004 ), though, as noted above, the magnitude of total exclusions has declined.”
Emphasis on Pro Forma Versus Gaap Earnings in Quarterly Press Releases: Determinants, Sec Intervention, and Market Reactions (2005, neutral): “The prior literature has examined a number of aspects of disclosure including the amount of information disclosed (Lang and Lundholm, 1993), the type of metrics disclosed (Bhattacharya et al, 2003; Lougee and Marquardt, 2004; Francis, Schipper and Vincent; 2002), and the mechanism through which info”
Are Investors Influenced By How Earnings Press Releases Are Written? (2008, neutral): “The amount of unexpected earnings (UE) is calculated as actual EPS minus EPS reported in the previous year, divided by share price at the beginning of the period, consistent with previous research (e.g., Bowen et al., 2005; Lougee & Marquardt, 2004).”
Signaling Firm Performance Through Financial Statement Presentation: An Analysis Using Special Items* : Financial Statement Presentation (2009, neutral): “…documents that benchmarks affect the recognition of special items (e.g., Moehrle 2002; Riedl 2004) and their presentation in press releases (e.g., Schrand and Walther 2000; Lougee and Marquardt 2004), and because managers care about meeting benchmarks (Mergenthaler, Rajgopal, and Srinivasan, 2009).”
The Disclosure of Non-GAAP Earnings Information in the Presence of Transitory Gains (2014, neutral): “…non-GAAP earnings are more informative to investors relative o GAAP earnings, especially when GAAPearnings informativeness is low or GAAP earnings are more subjective (Bradshaw and Sloan 2002; Bhattacharya et al. 2003; Brown and Sivakumar 2003a; Lougee and Marquardt 2004; Choi et al. 2007).”
Are Investors Influenced by Pro Forma Emphasis and Reconciliations in Earnings Announcements (2006, neutral): “Lougee and Marquardt (2004) find similar results when GAAP earnings informativeness is low or when strategic considerations are absent (e.g., GAAP earnings surprises are positive).”
Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “This concern is complicated by the fact that some disclosures are inversely related to commonly used proxies for earnings quality (Lougee and Marquardt, 2004; Chen et al., 2002), while management forecasts are positively related (Lennox and Park, 2006).”
The persistence of earnings and cash flows and the role of special items: Implications for the accrual anomaly (2006, neutral): “Typically firms reporting pro forma earnings are high growth firms ( Lougee & Marquardt, 2004 ).”
Why do pro forma and Street earnings not reflect changes in GAAP? Evidence from SFAS 123R (2012, neutral): “12 Lougee and Marquardt (2004) use firms’ earnings response coefficients and corresponding R2s to explain the likelihood that a firm subsequently reports pro forma earnings.”
Who Trades on Pro Forma Earnings Information (2004, background): “Recent research examining market reactions to earnings announcements containing pro forma information provides evidence that investors often pay more attention to management-adjusted pro forma earnings numbers than to audited GAAP earnings figures (Bhattacharya, Black, Christensen, and Larson, 2003,”