Reporting Non-GAAP Financial Measures: A Theoretical and Empirical Analysis in Europe

Product Description


The use of alternative performance indicators (APMs) (also known as Non-GAAP earnings) is a widespread phenomenon, and the increased reliance on APMs has recently triggered a strong debate among regulators, managers and investors on the nature of these tailored earnings and on the economic reasons behind them. On one hand, APMs might reflect managers attempt to offer useful information to predict companies future sustainable cash-flows and earnings (information hypothesis), while, on the other, the non-standardized nature of these metrics impacts on the comparability of the financial results, and reduces the reliability and the faithful representation of financial information (opportunistic hypothesis). By collecting several theoretical and empirical contributions on APMs, this book provides a number of interesting and useful insights on the economics of APMs and their impact on financial markets.


About the Author


Michele Pizzo is a Full Professor of Financial Accounting and Business Administration at the University of Campania, Luigi Vanvitelli, Italy. He has published 10 books and several journal articles. His research interests embrace financial accounting, fair value accounting, bank regulation, and practice and corporate governance. Nicola Moscariello, PhD, is an Associate Professor of Financial Accounting and Business Administration at the University of Campania, Luigi Vanvitelli, Italy. He is co-editor-in-chief of the journal Corporate Board: Role, Duties, and Composition, and has published three books and several journal articles. His research interests embrace financial reporting, financial accounting, and corporate governance.