Zhang, Huai; Zheng, Liu - In: Journal of Accounting and Economics 51 (2011) 1-2, pp. 186-202
Regulation G requires all companies to quantitatively reconcile pro forma earnings with GAAP earnings. This paper provides three findings related to the impact of reconciliations on mispricing of pro forma earnings. First, prior to Reg G, we find that mispricing of pro forma earnings is limited...