Investor Sentiment and Pro Forma Earnings Disclosures

被引:172
作者
Brown, Nerissa C. [1 ]
Christensen, Theodore E. [2 ]
Elliott, W. Brooke [3 ]
Mergenthaler, Richard D. [4 ]
机构
[1] Georgia State Univ, Atlanta, GA 30303 USA
[2] Brigham Young Univ, Provo, UT 84602 USA
[3] Univ Illinois, Urbana, IL 61801 USA
[4] Univ Iowa, Iowa City, IA 52242 USA
关键词
STOCK-PRICES; GAAP; MARKET; INFORMATIVENESS; EMPHASIS; ANALYSTS; STREET; LOGIT;
D O I
10.1111/j.1475-679X.2011.00427.x
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We examine the influence of investor sentiment on managers discretionary disclosure of pro forma (adjusted) earnings metrics in earnings press releases. We find that managers propensity to disclose an adjusted earnings metric (especially one that exceeds the GAAP earnings number) increases with the level of investor sentiment. Furthermore, our analyses suggest that, as investor sentiment increases, managers: (1) exclude higher levels of both recurring and nonrecurring expenses in calculating the pro forma earnings number and (2) emphasize the pro forma figure by placing it more prominently within the earnings press release. Additional analyses indicate that the association between investor sentiment and managers pro forma disclosure decisions at least partly reflects opportunistic motives. Finally, we find that managers own sentiment-driven expectations also play a role in their pro forma disclosure decisions.
引用
收藏
页码:1 / 40
页数:40
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