Abstract

http://ssrn.com/abstract=1984056
 
 

References (71)



 


 



Impression Management and Non-GAAP Reporting in Earnings Announcements


Encarna Guillamon Saorin


Universidad Carlos III de Madrid

Helena Isidro


ISCTE IUL Business School

Ana Cristina Marques


NOVA School of Business and Economics

January 12, 2012

CAAA Annual Conference 2012

Abstract:     
This paper analyzes whether managers combine two mechanisms capable of influencing investors’ judgments in earnings announcements. Specifically, we study whether managers use impression management techniques to emphasize non-GAAP earnings measures when announcing annual results. The study is carried out on an international sample of European countries, during 2003-2005. The method used is manual content analysis. We find evidence that managers use impression management techniques as a complement to the disclosure of non-GAAP earnings measures. Furthermore, our analysis of market reactions indicates that although investors recognize that non-GAAP earnings measures have information content they penalize firms that present these figures in combination with impression management techniques. Thus, investors seem to perceive the use of impression management to enhance non-GAAP figures as an opportunistic strategy and consequently inflict a penalty for this self-serving behavior.

Number of Pages in PDF File: 42

Keywords: Non-GAAP earnings, impression management, pro forma, press releases

JEL Classification: M41

working papers series


Download This Paper

Date posted: January 13, 2012  

Suggested Citation

Guillamon Saorin, Encarna and Isidro, Helena and Marques, Ana Cristina, Impression Management and Non-GAAP Reporting in Earnings Announcements (January 12, 2012). CAAA Annual Conference 2012. Available at SSRN: http://ssrn.com/abstract=1984056 or http://dx.doi.org/10.2139/ssrn.1984056

Contact Information

Encarna Guillamon Saorin
Universidad Carlos III de Madrid ( email )
CL. de Madrid 126
Madrid, Madrid 28903
Spain
Helena Isidro
ISCTE IUL Business School ( email )
Avenida Forcas Armadas
Lisboa, 1649-026
Portugal
Ana Cristina Marques (Contact Author)
NOVA School of Business and Economics ( email )
Campus de Campolide
Lisbon, 1099-032
Portugal
Feedback to SSRN


Paper statistics
Abstract Views: 422
Downloads: 58
Download Rank: 90,474
References:  71

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.281 seconds