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Implications of Components of Income Excluded from Pro Forma Earnings for Future Profitability and Equity Valuation
16 references·16 citing·51 second hopsampled
Implications of Components of Income Excluded from Pro Forma Earnings for Future Profitability and Equity Valuation (2007)Implications of Components of Income Excl…Accruals, Accounting-Based Valuation Models, and the Prediction of Equity Values (2005)Accruals, Accounting-Based Va…Earnings Informativeness and Strategic Disclosure: An Empirical Examination of “Pro Forma” Earnings (2004)Earnings Informativeness and …The Predictive Value of Expenses Excluded from Pro Forma Earnings (2003)The Predictive Value of Expen…Earnings Management to Avoid Losses and Earnings Decreases: Are Analysts Fooled?* (2003)Earnings Management to Avoid …Comparing the Value Relevance of Two Operating Income Measures (2003)Comparing the Value Relevance…Management's Incentives to Avoid Negative Earnings Surprises (2002)Management's Incentives to Av…GAAP versus The Street: An Empirical Assessment of Two Alternative Definitions of Earnings (2002)GAAP versus The Street: An Em…Do Stock Prices Fully Reflect the Implications of Special Items for Future Earnings? (2002)Do Stock Prices Fully Reflect…On Transitory Earnings (1999)On Transitory EarningsAn empirical assessment of the residual income valuation model (1999)An empirical assessment of th…Accruals, Cash Flows, and Equity Values (1999)Accruals, Cash Flows, and Equ…Taxes, Financing Decisions, and Firm Value (1998)Taxes, Financing Decisions, a…Relative valuation roles of equity book value and net income as a function of financial health (1998)Relative valuation roles of e…Changes in the value-relevance of earnings and book values over the past forty years (1997)Changes in the value-relevanc…Price and return models (1995)Price and return modelsEarnings, Book Values, and Dividends in Equity Valuation* (1995)Earnings, Book Values, and Di…Securities and Exchange Commission Regulation and Non-GAAP Income Statements (2022)Securities and Exchange Commi…The Future of Assurance in Capital Markets: Reclaiming the Economic Imperative of the Auditing Profession (2020)The Future of Assurance in Ca…Street versus GAAP : Which Effective Tax Rate Is More Informative?* (2020)Street versus GAAP : Which Ef…The Value Relevance of IFRS Earnings Totals and Subtotals and Non-GAAP Performance Measures (2018)The Value Relevance of IFRS E…Analysts’ Role in Shaping Non-GAAP Reporting: Evidence from a Natural Experiment (2018)Analysts’ Role in Shaping Non…Information Environment Consequences of SEC Non-GAAP Comment Letters (2017)Information Environment Conse…IFRS non‐ GAAP earnings disclosures and fair value measurement (2016)IFRS non‐ GAAP earnings discl…The informativeness of pro forma and street earnings: an examination of information asymmetry around earnings announcements (2015)The informativeness of pro fo…The Great Unknown: Why Exclude Otherr Items from Non-GAAP Earnings Calculations in the Post-Reg G World? (2015)The Great Unknown: Why Exclud…The role of reconciliation quality in limiting mispricing of non-GAAP earnings announcements by EURO STOXX firms (2014)The role of reconciliation qu…The drivers, consequences and policy implications of non-GAAP earnings reporting (2014)The drivers, consequences and…The Timing of Quarterly ‘Pro Forma’ Earnings Announcements (2012)The Timing of Quarterly ‘Pro …The Value Relevance of Alternative Earnings Measures: A Comparison of Pro Forma, GAAP, and I/B/E/S Earnings (2010)The Value Relevance of Altern…Press Release Disclosure of ‘Pro Forma’ Earnings Metrics by Large German Corporations – Empirical Evidence and Regulatory Recommendations (2010)Press Release Disclosure of ‘…Do Investors Understand Really Dirty Surplus? (2010)Do Investors Understand Reall…Classificatory income smoothing: The impact of a change in regime of reporting financial performance (2007)Classificatory income smoothi…The relationship between return and market value of common stocks (1981)Positive Accounting Theory (1985)Co-Integration and Error Correction: Representation, Estimation, and Testing (1987)Corporate Environmental Disclosure Strategies: Determinants, Costs and Benefits (1999)Equity Valuation and Negative Earnings: The Role of Book Value of Equity (1999)Investor flows and the assessed performance of open-end mutual funds (1999)Financing Constraints and Corporate Investment (1987)Financing Constraints and Corporate Investment (1988)Accounting valuation, market expectation, and cross-sectional stock returns (1998)Capital markets research in accounting (2001)The Capital Asset Pricing Model: Theory and Evidence (2004)The information content of losses (1995)The conservatism principle and the asymmetric timeliness of earnings1 (1997)The Boundaries of Financial Reporting and How to Extend Them (1999)The effect of international institutional factors on properties of accounting earnings (2000)Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature (2001)Understanding earnings quality: A review of the proxies, their determinants and their consequences (2010)Determinants of corporate borrowing (1977)Limited-dependent and qualitative variables in econometrics (1983)Industry costs of equity (1997)Emphasis on Pro Forma versus GAAP Earnings in Quarterly Press Releases: Determinants, SEC Intervention, and Market Reactions (2005)Do managers define non-GAAP earnings to meet or beat analyst forecasts? (2013)Do Firms Strategically Disseminate? Evidence from Corporate Use of Social Media (2017)Financial Ratios As Predictors of Failure (1966)FINANCIAL RATIOS, DISCRIMINANT ANALYSIS AND THE PREDICTION OF CORPORATE BANKRUPTCY (1968)Do investors overvalue firms with bloated balance sheets? (2004)Innovative efficiency and stock returns (2012)The Cost of Capital, Corporation Finance and the Theory of Investment (1958)Dividend Policy, Growth, and the Valuation of Shares (1961)The Theory and Measurement of Business Income (1961)Valuation and Clean Surplus Accounting for Operating and Financial Activities* (1995)Does Corporate Social Responsibility Affect the Cost of Capital? (2010)Earnings Management During Import Relief Investigations (1991)Debt covenant violation and manipulation of accruals (1994)Voluntary Nonfinancial Disclosure and the Cost of Equity Capital: The Initiation of Corporate Social Responsibility Reporting (2010)Detecting Earnings Management (2012)Risk, Return, and Equilibrium: Empirical Tests (1973)Common risk factors in the returns on stocks and bonds (1993)The economic consequences associated with integrated report quality: Capital market and real effects (2017)Going digital: implications for firm value and performance (2023)Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)Corporate financing and investment decisions when firms have information that investors do not have (1984)Auditor choice and the cost of debt capital for newly public firms (2004)Does the Contribution of Corporate Cash Holdings and Dividends to Firm Value Depend on Governance? A Cross‐country Analysis (2006)Corporate Tax Avoidance and Firm Value (2009)An Empirical Evaluation of Accounting Income Numbers (1968)A Review of the Earnings Management Literature and Its Implications for Standard Setting (1999)Have Financial Statements Lost Their Relevance? (1999)Why Are Earnings Kinky? An Examination of the Earnings Management Explanation (2003)The Walk‐down to Beatable Analyst Forecasts: The Role of Equity Issuance and Insider Trading Incentives* (2004)Earnings Management Using Classification Shifting: An Examination of Core Earnings and Special Items (2006)
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References

  • 1995Earnings, Book Values, and Dividends in Equity Valuation*5,061 cited
  • 1997Changes in the value-relevance of earnings and book values over the past forty years1,788 cited
  • 2002Management's Incentives to Avoid Negative Earnings Surprises1,615 cited
  • 1998Taxes, Financing Decisions, and Firm Value1,037 cited
  • 1999An empirical assessment of the residual income valuation model918 cited
  • 1998Relative valuation roles of equity book value and net income as a function of financial health897 cited
  • 2002GAAP versus The Street: An Empirical Assessment of Two Alternative Definitions of Earnings819 cited
  • 1995Price and return models691 cited
  • 2003The Predictive Value of Expenses Excluded from Pro Forma Earnings533 cited
  • 2004Earnings Informativeness and Strategic Disclosure: An Empirical Examination of “Pro Forma” Earnings456 cited
  • 2003Comparing the Value Relevance of Two Operating Income Measures310 cited
  • 2003Earnings Management to Avoid Losses and Earnings Decreases: Are Analysts Fooled?*306 cited
  • 1999Accruals, Cash Flows, and Equity Values300 cited
  • 1999On Transitory Earnings266 cited
  • 2002Do Stock Prices Fully Reflect the Implications of Special Items for Future Earnings?

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247 cited
  • 2005Accruals, Accounting-Based Valuation Models, and the Prediction of Equity Values188 cited
  • Cited by

    • 2014The drivers, consequences and policy implications of non-GAAP earnings reporting77 cited
    • 2018Analysts’ Role in Shaping Non-GAAP Reporting: Evidence from a Natural Experiment75 cited
    • 2020The Future of Assurance in Capital Markets: Reclaiming the Economic Imperative of the Auditing Profession73 cited
    • 2012The Timing of Quarterly ‘Pro Forma’ Earnings Announcements61 cited
    • 2010The Value Relevance of Alternative Earnings Measures: A Comparison of Pro Forma, GAAP, and I/B/E/S Earnings60 cited
    • 2016IFRS non‐ GAAP earnings disclosures and fair value measurement50 cited
    • 2010Do Investors Understand Really Dirty Surplus?47 cited
    • 2015The informativeness of pro forma and street earnings: an examination of information asymmetry around earnings announcements42 cited
    • 2010Press Release Disclosure of ‘Pro Forma’ Earnings Metrics by Large German Corporations – Empirical Evidence and Regulatory Recommendations41 cited
    • 2015The Great Unknown: Why Exclude Otherr Items from Non-GAAP Earnings Calculations in the Post-Reg G World?36 cited
    • 2022Securities and Exchange Commission Regulation and Non-GAAP Income Statements35 cited
    • 2007Classificatory income smoothing: The impact of a change in regime of reporting financial performance33 cited
    • 2014The role of reconciliation quality in limiting mispricing of non-GAAP earnings announcements by EURO STOXX firms27 cited
    • 2018The Value Relevance of IFRS Earnings Totals and Subtotals and Non-GAAP Performance Measures23 cited
    • 2020Street versus GAAP : Which Effective Tax Rate Is More Informative?*22 cited
    • 2017Information Environment Consequences of SEC Non-GAAP Comment Letters20 cited