The frequency of special items has increased dramatically over time, offering a convenient conduit for the inappropriate classification of past, present, and future recurring expenses as non-recurring. Identifying this misclassification is especially important in light of the pervasive use of...

We empirically examine the effects of intensified scrutiny over non-GAAP reporting on the quality of non-GAAP earnings exclusions. We find that, on average, exclusions are of higher quality (i.e., more transitory) following intervention by the Securities and Exchange Commission (SEC) into...

We empirically examine the effects of intensified scrutiny over non-GAAP reporting on the quality of non-GAAP earnings exclusions. We find that, on average, exclusions are of higher quality (i.e., more transitory) following intervention by the Securities and Exchange Commission (SEC) into...

We investigate whether earnings guidance affects aggregate stock returns through its effects on expectations about overall earnings performance and/or aggregate expected returns. We find that aggregate guidance, especially relative levels of quarterly downward guidance, is associated with...

Abstract: We examine the impact of ethical and acquisition dynamics related to whether the target initiates the sale of the firm on the method-of-sale decision (auctions vs. one-on-one negotiations), and on shareholder wealth creation. While we find a strong positive relationship between proxies...

We investigate whether earnings guidance affects aggregate stock returns through its effects on expectations about overall earnings performance and/or aggregate expected returns. We find that aggregate guidance, especially relative levels of quarterly downward guidance, is associated with...

Although a great deal of research documents the information content of management earnings forecasts at the firm level, there is little research on the informativeness of aggregate earnings guidance. We argue that aggregate earnings guidance is potentially informative at the market/economy level...

We examine several potential explanations for the contemporaneous reporting of income increasing and income decreasing special items. The analysis is rooted in the observation that the practice should be infrequent since statement users discount special items relative to recurring income, i.e.,...