US Managers' Use of ‘Pro Forma’ Adjustments to Meet Strategic Earnings Targets

By Dirk E. Black, Theodore E. Christensen. 2009

212 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/e92ae6990ac2a8412bee4a73f21703fc895c8d32

How researchers see this paper

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

In Accounting

1. Benjamin C. Whipple
2. Martin Walker
3. Theodore E. Christensen
4. Mark T. Soliman
5. Kurt H. Gee
6. Mark Bradshaw
7. Jeffrey T. Doyle
8. Jared N. Jennings

In Finance

1. Martin Walker
2. Mark T. Soliman
3. Benjamin C. Whipple
4. Kurt H. Gee
5. Jared N. Jennings
6. Jeffrey T. Doyle
7. Mark Bradshaw
8. Theodore E. Christensen

In Strategy and Management

1. Benjamin C. Whipple
2. Theodore E. Christensen
3. Mark T. Soliman
4. Kurt H. Gee
5. Martin Walker
6. Mark Bradshaw
7. Jared N. Jennings
8. Jeffrey T. Doyle

Citations in the corpus

• Why do pro forma and Street earnings not reflect changes in GAAP? Evidence from SFAS 123R (2012, unknown): “Although Bhattacharya et al. (2003) find that manager and analyst exclusions are the same about two-thirds of the time, Black and Christensen (2009) and Brown et al. (2011) find that exclusions by managers of recurring items that analysts do not exclude are the most ‘‘aggressive’’ and are clear…”
• How far can we trust earnings numbers? What research tells us about earnings management (2013, background): “Black and Christensen (2009) provide a comprehensive analysis of the use and abuse of proforma earnings by US firms.”
• The Disclosure of Non-GAAP Earnings Information in the Presence of Transitory Gains (2014, unknown): “2 See for example, Bradshaw and Sloan 2002; Bhattacharya et al. 2003; Doyle et al. 2003; Lougee and Marqu dt 2004; Johnson and Schwartz 2005; Black and Christensen 2009; Frankel et al. 2011; Doyle et al. 2013.”
• Do Managers Define Non-GAAP Earnings to Meet or Beat Analyst Forecasts? (2013, methodology): “In this section, we use a dataset of non-GAAP earnings figures hand-collected from management press releases (Black and Christensen, 2009).”
• Non-GAAP earnings and board independence (2011, unknown): “Finally, Black and Christensen (2009) find that managers define nonGAAP earnings in a way that allows them to meet earnings benchmarks.(9) The mere use of non-GAAP measures, however, does not necessarily imply opportunism on the part of managers. The characteristics of an earnings number useful for ”
• Analysts’ GAAP earnings forecasts and their implications for accounting research (2018, background): “Berger (2005) 966 "...the [measurement error] problem may well induce Bhattacharya et al.'s result that [non-GAAP] earnings are more informative than GAAP earnings." and "Once again, the interpretation of these results is clouded by the same [measurement error] problem."”