We examine the association of self-presentational causal disclosures on earnings-related outcomes in the prospectus of Chinese IPO firms and short-term IPO valuation (offer price-based valuation and IPO first-day underpricing). Using detailed content analysis of causal explanations in the...

We investigate the disclosure and prominence of non-GAAP earnings metrics in IPO prospectuses and how these disclosures affect IPO valuation. In contrast to already-public firms, we find an inverted U-shaped relation between IPO firms' GAAP performance and the likelihood that they will disclose...