Internacional evidence on non-GAAP earnings: a cross-country investigation

• Ano de defesa: 2023
• Autor(a) principal: Andrade, Gabriela Vasconcelos de
• Tipo de documento: Tese
• Tipo de acesso: Acesso aberto
• Idioma: eng
• Instituição de defesa: Biblioteca Digitais de Teses e Dissertações da USP
• Palavras-chave em Português: Adjusted EBITDA; EBITDA; EBITDA Ajustado; Lucro não-GAAP; Medida não-GAAP; Non-GAAP earnings; Non-GAAP measure
• Link de acesso: https://www.teses.usp.br/teses/disponiveis/12/12136/tde-14122023-161358/

Non-GAAP earnings (NGE) reporting is a relatively new financial reporting practice that is challenging accounting earnings status quo. Whether they are an overall informative practice is still a gray sky. As to enlighten the debate and help explain the motives behind the sudden increase in non-GAAP earnings measures, I focus on international data. I examine (i) whether institutional factors shape non-GAAP earnings reporting choice in a cross-country setting and (ii) whether NGE disclosures behavior is conditional on the reporting channel in a cross-listing setting. I also provide an up-to-date study on nearly 40 years of research in the field based on bibliometric and content analysis approach. Results from the cross-country sample suggest that international firms under the same reporting incentives as those placed on U.S. firms are more likely to report NGE. Results from the U.S. cross-listed sample suggest that home-countries institutional factors do not significantly influence firms reporting incentives to disclose non-GAAP earnings in a different way in their local annual reports, when compared to Form 20-F disclosures. Other results show that (i) cross-listed firms adopting U.S. GAAP are more highly associated with high adjustments values and (ii) that they provide frequent adjustments that are commonly described in the past literature: impairment, net equity investment, stock option and share-based compensation expenses. I contribute to the non-GAAP literature with a novel cross-country approach, showing that settings with stronger institutional factors shape firms reporting incentives to report non-GAAP performance metrics as they face more pressure to not engage in GAAP earnings management.