Relative emphasis on Non-GAAP earnings in conference calls: Determinants and market reaction

• Main Authors: HENRY, Elaine, HU, Nan, JIANG, Xi
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2020
• Subjects: Non-GAAP; Conference calls; Disclosure emphasis; Text mining; Databases and Information Systems; Finance and Financial Management; Numerical Analysis and Scientific Computing
• Online Access: https://ink.library.smu.edu.sg/sis_research/8043
• Institution: Singapore Management University

We use textual analysis to examine whether non-GAAP earnings receive greater emphasis than GAAP earnings in the conference calls that accompany earnings announcements. We measure relative emphasis, i.e. prominence, based on the first appearance or frequency of GAAP and non-GAAP earnings per share (E...