affect investment, particularly R&D expenditures, when firms have financial covenants that are affected by changes in GAAP …This paper investigates whether changes in Generally Accepted Accounting Principles (GAAP) affect corporate investment … decisions. Using a sample containing forty nine changes in GAAP, I find that changes in accounting rules affect investment …

will have lower disclosure quality and lower credibility with investors when compared to “GAAP-Based” MCFFs. “GAAP …-Based” MCFFs are those whose cash flow definition is associated with a GAAP cash flow measure (e.g., OCF or NCF), one that can be … derived from GAAP cash flow measures (e.g., free cash flow, FCF), or one where management explicitly discloses the definition …