Post-Regulation G Findings

Posted: 28 Feb 2010

See all articles by Linda Campbell

Linda Campbell

Texas State University - San Marcos

Marshall K. Pitman

University of Texas at San Antonio

Date Written: February, 28 2010


Researchers generally recognize that the stated goal of Regulation G (Reg. G), the Securities and Exchange Commission’s (SEC) conditions for use of non-Generally Accepted Accounting Principles (GAAP) financial measures, is to improve the quality and transparency of non-GAAP financial measures rather than to specifically affect various reporting trends of such measures. Various researchers continue to report substantial deceases in the number of non-GAAP disclosures and/or discloser firms since its implementation in early 2003. By using a sampling criteria in line with the SEC’s definition of non-GAAP financial measures and by reviewing actual corporate press releases, rather than relying on proxies (such as keyword searches), our results indicate that the proportion of companies releasing non-GAAP financial measures has decreased only moderately. We further examine recent changes in two areas of reporting trends noted in prior literature and conclude: 1) the most common pre-Reg. G categories of adjustments have changed and non-GAAP terminology remains as inconsistent as noted in pre-Reg. G research; and 2) the business services sector, which had previously been identified as a prominent non-GAAP discloser (reporting) sector is still an avid discloser of non-GAAP financial measures.

JEL Classification: M41

Suggested Citation

Campbell, Linda and Pitman, Marshall K., Post-Regulation G Findings (February, 28 2010). Research in Accounting Regulations, Vol. 21, No. 2, 2009. Available at SSRN:

Linda Campbell

Texas State University - San Marcos ( email )

San Marcos, TX 78666-4616
United States

Marshall K. Pitman (Contact Author)

University of Texas at San Antonio ( email )

One UTSA Circle
San Antonio, TX 78249
United States

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