Non-GAAP earnings disclosure quality and overvalued equity
研究股权高估如何影响公司披露非GAAP盈余的倾向和质量，发现高估公司更可能披露但质量更低，对投资者和监管者有参考价值。
Purpose This study investigates the relations between overvalued equity and the likelihood and quality of a non-GAAP earnings disclosure. Design/methodology/approach Using alternative measures of non-GAAP earnings quality that include the magnitude of the disclosure and its exclusion persistence, this study employs multivariate regression analyses to evaluate the associations between overvalued firms and the likelihood and quality of a non-GAAP disclosure. Findings Results of tests show that the likelihood (quality) of a non-GAAP disclosure increases (decreases) with overvaluation. Our results are robust to alternative proxies for overvaluation, non-GAAP disclosure quality, and endogeneity tests. We find that these results may be extended to highly valued firms more generally. Originality/value In light of the rise in firms' propensities to report non-GAAP earnings, a growing body of research has investigated factors related to the quality of these disclosures. This research extends these studies by investigating the questions of how overvaluation affects the likelihood and quality of a non-GAAP disclosure.