We investigate the association between risk-taking incentives provided by stock-based compensation arrangements and non …-GAAP financial disclosures. Controlling for compensation to stock price sensitivity, we find that managers with higher compensation … disclosures. In addition, higher-vega managers are found to be associated with more frequent and less opportunistic non …

disclosures. The results show that managers are able to influence the market's perception of earnings by using various … detailed reconciliation between GAAP and pro forma earnings, effectively reduces such influence by 1) discouraging managers …

Our study explores how managerial stock holdings and option holdings affect CEOs' income smoothing incentives. Given … the different roles of stock holdings and option holdings in solving agency problems, managers may smooth past earnings … holdings aligning the interests of managers and shareholders, and managers using discretionary accruals to smooth past earnings …