IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v60y2024ics1544612323012886.html
   My bibliography  Save this article

Macroeconomic uncertainty and non-GAAP disclosure

Author

Listed:
  • Liu, Junjun

Abstract

This study examines the relation between macroeconomic uncertainty and firms’ non-GAAP disclosure. Using the dispersion of GDP forecasts and the Chicago Board Options Exchange (CBOE) VIX Index to proxy for macroeconomic uncertainty, this study finds that non-GAAP reporting likelihood decreases during periods of high macroeconomic uncertainty. However, for firms that choose to disclose non-GAAP earnings, their non-GAAP exclusions become more transitory, indicating an increase in non-GAAP reporting quality. Further evidence suggests that the increase in non-GAAP reporting quality is driven by the decrease in the persistence of excluded special items. Overall, the findings of this study advance the knowledge of how non-GAAP disclosure changes as macroeconomic uncertainty varies.

Suggested Citation

  • Liu, Junjun, 2024. "Macroeconomic uncertainty and non-GAAP disclosure," Finance Research Letters, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323012886
    DOI: 10.1016/j.frl.2023.104916
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612323012886
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2023.104916?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Macroeconomic uncertainty; Non-GAAP disclosure; GDP forecast dispersion; VIX Index;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323012886. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.