20-F reconciliations and investment recommendations by financial professionals
As part of the U.S. regulatory requirements, non-U.S. companies registered on U.S. stock exchanges ('foreign registrants') are required to compile financial reports that comply with U.S. Generally Accepted Accounting Principles ('GAAP') or provide a reconciliation of non-U.S. GAAP financial statements to U.S GAAP (20-F reconciliation). The objective of this study is to determine if identical information with respect to U.S. GAAP may be evaluated differently depending on whether the 20-F reconciliation information is presented in a positive (20-F reconciliation gain) or negative (20-F reconciliation loss) way. The research results indicate that the financial professionals' investment recommendations were significantly lower for a firm when it reports a reconciliation loss relative to when it reports a reconciliation gain or when it reports under U.S. GAAP, although the financial results were identical in all cases. Further, consistent with Bradshaw [Bradshaw MT. How do analysts use their earnings forecasts in generating stock recommendations? Account Rev 2004;79(1):25-50.], the financial professionals' expectations of earnings growth were significantly and positively associated with their investment recommendation.
Year of publication: |
2008
|
---|---|
Authors: | Krishnamoorthy, Ganesh ; Maroney, James J. ; Ó hÓgartaigh, Ciarán |
Published in: |
Journal of Business Research. - Elsevier, ISSN 0148-2963. - Vol. 61.2008, 4, p. 355-362
|
Publisher: |
Elsevier |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
20-F reconciliations and investment recommendations by financial professionals
Krishnamoorthy, Ganesh, (2008)
-
20-F reconciliations and investment recommendations by financial professionals
Krishnamoorthy, Ganesh, (2008)
-
20-F reconciliations and investment recommendations by financial professionals
Krishnamoorthy, Ganesh, (2008)
- More ...