Assessing the relative informativeness and permanence of pro forma earnings and GAAP operating earnings

• Main Authors: BHATTACHARYA, Nilabhra, Black, Erv, Christensen, Ted, Larson, Chad
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2003
• 主題: Pro forma earnings; Information content of earnings; Persistence of earnings; Analysts’ forecasts; Accounting; Corporate Finance
• 在線閱讀: https://ink.library.smu.edu.sg/soa_research/967; https://ink.library.smu.edu.sg/context/soa_research/article/1966/viewcontent/assessing_the_relative_informativeness.pdf

This study investigates whether market participants perceive pro forma earnings to be more informative and more persistent than GAAP operating income by analyzing a sample of 1,149 actual pro forma press releases. We find that pro forma announcers report frequent GAAP losses and are mostly concentra...