Discussion of ‘IFRS non‐GAAP earnings disclosures and fair value measurement’

Cheng, C. S. Agnes

doi:10.1111/acfi.12200

Cited by 7 publications

(6 citation statements)

References 27 publications

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“…The only exception isCheng (2017) who finds that non-GAAP quality is negatively associated with managerial ability, contrary to the evidence documented in this paper.…”

contrasting

confidence: 99%

Do more able managers provide better non‐GAAP earnings?

Kim

2022

Accounting & Finance

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This paper investigates whether managerial ability is associated with non‐GAAP earnings quality. I find that the quality of non‐GAAP earnings is greater for high‐ability managers than low‐ability managers. I also find that investors consider non‐GAAP earnings released by high‐ability management to be informative. Additional tests show that the positive association between managerial ability and the quality of non‐GAAP earnings is stronger when return volatility or managerial stock ownership is greater. The results are robust to alternative measures of managerial ability and non‐GAAP earnings quality and to controlling for endogeneity bias. Overall, this paper provides evidence that managers of high ability use non‐GAAP reporting as a signalling tool to reduce information asymmetry.

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“…The only exception isCheng (2017) who finds that non-GAAP quality is negatively associated with managerial ability, contrary to the evidence documented in this paper.…”

contrasting

confidence: 99%

Do more able managers provide better non‐GAAP earnings?

Kim

2022

Accounting & Finance

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“…Panel B reports the cross‐sectional test for managerial reputation. Observations are classified into high managerial ability ( HIGH ) and low managerial ability ( LOW ) subsamples according to managerial ability score (Cheng, 2017; Demerjian et al, 2012), MA_SCORE , using the sample median as the cut‐off. All variables are as defined in Appendix 2.…”

Section: Resultsmentioning

confidence: 99%

“…Thus, we control for STKCO , DA , and DIV , which are proxies for managerial incentives. We further control for managerial ability ( MA_SCORE ) following Cheng (2017), who documents that managerial ability affects decisions related to non‐GAAP earnings reporting.…”

Section: Sample and Research Designmentioning

confidence: 99%

“…To proxy for managerial ability, we use the managerial ability score provided by Demerjian et al (2012). This also follows Cheng (2017), who used the same managerial ability score and documented that managerial ability affects decisions related to non-GAAP earnings reporting. Panel B of Table 4 presents the results of estimating Equation (1) separately for subsamples with high and low managerial ability, where we split the sample based on the median value of the managerial ability score.…”

Section: Reputational Cost Of Managersmentioning

confidence: 99%

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Non‐GAAP earnings reporting following going‐concern opinions

Zhang

Kwack

et al. 2022

Accounting & Finance

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We examine non‐GAAP earnings reporting following a going‐concern audit opinion (GCO). Using a propensity score‐matched sample, matching first‐time going‐concern issuing companies with firms in financial distress that did not receive a going‐concern report, we find that the likelihood and frequency of non‐GAAP earnings reporting are lower following GCOs. In additional analyses, we find the negative association between the announcement of GCOs and the likelihood and frequency of non‐GAAP earnings reporting stronger when GCOs are issued by industry‐specialist auditors and when GCOs are unexpected, but do not find litigation risk or managers' ability to affect the association. These results are consistent with a decrease in investor demand for non‐GAAP earnings disclosures following GCOs.

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“…Another important feature that accompanies fair value of agricultural equipment and its fair value in the financial statements of an enterprise is the application of a number of standard methods [6], [7], [8], [9], [10] that are introduced in the process self evaluation of agricultural equipment.…”

Section: Introductionmentioning

confidence: 99%

The importance of operating agricultural equipment in use by fair value from the management situation in small and medium-sized enterprises in the transitional country: Example of the Republic of Serbia

Vitomir¹,

Tomaš-Miskin²,

Popović³

2021

Poljoprivredna tehnika

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This study highlights the importance of using real-life values of agricultural equipment in real financial statements in medium-sized enterprises. The authors have adopted the essence of nature related to the estimation of agricultural equipment, that is, he has stated that in the agricultural production of transition countries, agricultural equipment has been used for more than five decades. This was a key assumption adopted by the authors of this study. In addition, the presentation of realistic financial statements should include an account of the real value of agricultural equipment, which essentially leads to a periodic fair valuation of agricultural equipment available to agricultural producers in transition countries.

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Discussion of ‘IFRS non‐GAAP earnings disclosures and fair value measurement’

Cited by 7 publications

References 27 publications

Do more able managers provide better non‐GAAP earnings?

Do more able managers provide better non‐GAAP earnings?

Non‐GAAP earnings reporting following going‐concern opinions

The importance of operating agricultural equipment in use by fair value from the management situation in small and medium-sized enterprises in the transitional country: Example of the Republic of Serbia

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