Strategic Benchmarks in Earnings Announcements: The Selective Disclosure of Prior‐Period Earnings Components

By Catherine Schrand, Beverly R. Walther. 2000

316 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/dabb0f6f0cb9aa88121fb190de416d1b2b8ed96b

How researchers see this paper

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In Accounting

1. Christian Leuz
2. Peter D. Wysocki
3. Martin Walker
4. Luzi Hail
5. Rodrigo S. Verdi
6. David A. Hirshleifer
7. Holger Daske
8. Mark H. Lang

In Finance

1. Christian Leuz
2. Luzi Hail
3. Peter D. Wysocki
4. David A. Hirshleifer
5. Siew Hong Teoh
6. Rodrigo S. Verdi
7. Andrew Van Buskirk
8. Martin Walker

In Strategy and Management

1. Christian Leuz
2. Luzi Hail
3. Martin Walker
4. Peter D. Wysocki
5. Rodrigo S. Verdi
6. Holger Daske
7. David A. Hirshleifer
8. Feng Li

Citations in the corpus

• Bias in the tone of forward‐looking narratives (2010, background): “…2006), the selective disclosure and calculation of proforma earnings (e.g. Walker and Louvari, 2003; Johnson and Schwartz, 2005), the use of priorperiod benchmarks (e.g. Schrand and Walther, 2000), and the presentation of graphs and pictures in the annual report (e.g. Beattie and Jones, 1992).”
• SEC interventions and the frequency and usefulness of non-GAAP financial measures (2006, background): “12 Schrand and Walther (2000) mention that PR Newswire and Business Wire edit press releases only for grammar (such as commas, decimal points and AP style) and verify any changes with the firm.”
• How does readability influence investors' judgments? Consistency of benchmark performance matters (2015, background): “We appreciate helpful comments from Lisa Koonce (editor), two anonymous reviewers, John Harry Evans III (senior editor), Bob Libby, and workshop participants at Nanyang Technological University, Cornell University, and Peking University.”
• Assessing the Relative Informativeness and Permanence of Pro Forma Earnings and GAAP Operating Earnings (2003, background): “17 Schrand and Walther (2000) find evidence that managers strategically highlight prior period gains and losses on asset disposals in order to portray current income in the most positive light possible.”
• Earnings Management Using Classification Shifting: an Examination of Core Earnings and Special Items (2006, unknown): “This strategic reporting extends to earnings press releases (Schrand and Walther 2000; Bradshaw and Sloan 2002; Bowen et al. 2005).”
• The Disclosure of Non-GAAP Earnings Information in the Presence of Transitory Gains (2014, unknown): “Second, including the transitory gain and thus only presenting the higher GAAP earnings the current period does not preclude the exclusion of the transitory gain in subsequent periods when establishing prior period earnings benchmarks (Schrand and Walther 2000).”
• Signaling Firm Performance Through Financial Statement Presentation: An Analysis Using Special Items* : Financial Statement Presentation (2009, unknown): “…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,…”