In this paper, we examine the possibility that disclosure of non-GAAP earnings allows managers to satisfy market expectations with respect to firm performance without resorting to GAAP earnings management, reducing the aggressiveness of managers' GAAP reporting. In an experiment using...

We present 60 experienced credit analysts with financial information for two firms: one that mainly outsources production and one that does not. We find that analysts are better able to identify firm characteristics that make an outsourcer more creditworthy when those characteristics are...