The information content of alternative performance measures in the European context
The discretionary nature of alternative performance measures raises the question of their information content, particularly in the European Union where, unlike the United States, there is no specific regulation but only a recommendation without coercive power. Based on hand-collected data in press r...
Tallennettuna:
| Julkaisussa: | URI:https://journals.openedition.org/fcs, |
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| Päätekijät: | , , |
| Aineistotyyppi: | Article ou chapitre numérique |
| Kieli: | Anglais |
| Julkaistu: |
Finance Contrôle Stratégie
2024
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| Aiheet: | |
| Linkit: | Accès Université d'Orléans et IFPM Accès Université d'Orléans et IFPM |
| Yhteenveto: | The discretionary nature of alternative performance measures raises the question of their information content, particularly in the European Union where, unlike the United States, there is no specific regulation but only a recommendation without coercive power. Based on hand-collected data in press releases of French and UK firms, we show that non-GAAP earnings measures are more informative compared with GAAP counterparts. However, the alternative performance measures may be used opportunistically when firms fall short of certain accounting earnings benchmarks. |
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