Non-GAAP earnings reporting has been linked with both informative and strategic incentives. We seek to disentangle these conflicting effects by examining the association between non-GAAP earnings disclosure and transitory items in GAAP earnings, conditional on managers' reporting incentives. We...

We provide a methodological contribution by developing, describing and evaluating a method for automatically retrieving and analysing text from digital PDF annual report files published by firms listed on the London Stock Exchange (LSE). The retrieval method retains information on document...

We critically assess mainstream accounting and finance research applying methods from computational linguistics (CL) to study financial discourse. We also review common themes and innovations in the literature and assess the incremental contributions of work applying CL methods over manual...

We compare the performance of machine learning algorithms and wordlists at replicating manual coding of sentence-level tone and attribution in earnings press releases. We train learning algorithms on a sample of manually annotated performance sentences and assess accuracy using a separate...

We measure annual report commentary articulating entities' business model and strategy, and then examine the capital market effects of enhancing such disclosure. Our empirical disclosure proxy is based on n-grams drawn from popular strategy textbooks and the academic strategy literature....

The objective of voluntary disclosure regulation is to mitigate information asymmetry between the management and outside users. However, prior studies on voluntary disclosures provide mixed evidences on managers' incentives. Using a setting of voluntary non-GAAP EPS reporting, this study...

When producing IFRS financial standards, one of the IASB's main goals was to create a set of standards which were more useful to investors as a predictive tool. We assess the success of the IASB in this goal by investigating the effects of the introduction of IFRS on the relative information...

Prior research using the residual income valuation model and linear information models has generally found that estimates of firm value are negatively biased. We argue that this could result from the way in which accounting conservatism effects are reflected in such models. We build on the...

In the UK, SSAP 13 requires that firms immediately expense most of their R&D expenditures.The reported earnings of high-R&D expenditure firms are therefore likely to convey less valuerelevantinformation to investors than those of less research-intensive firms. Using a sample offirms from the...