We contribute to the debate regarding the informativeness of pro forma earnings disclosures by providing evidence that a group of informed traders, short sellers, trade as if firms' voluntary non-GAAP earnings disclosures create information advantages they can exploit. While prior research...

We use a novel data set to examine the across-time consistency and across-firm comparability of firms’ non-GAAP earnings disclosures. Given widespread concern about non-GAAP reporting among regulators, standard setters, the investor community, and academics, our investigation provides timely...

We use a novel dataset to examine the across-time consistency and across-firm comparability of firms’ non-GAAP earnings disclosures. We begin by identifying firms that change their non-GAAP earnings definition from one year to the next. These deviations are uncommon, but when managers change...