The information content of alternative performance measures in the European context

Le contenu informationnel des indicateurs alternatifs de performance dans le contexte européen

Gaelle Lenormand, Hoang Nguyen and Lionel Touchais
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Gaelle Lenormand: UR - Université de Rennes
Hoang Nguyen: Huế University
Lionel Touchais: UR - Université de Rennes

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Abstract: The discretionary nature of alternative performance measures raises the question of their information content, particularly in the European Union where, unlike the United States, there is no specific regulation but only a recommendation without coercive power. Based on hand-collected data in press releases of French and UK firms, we show that non-GAAP earnings measures are more informative compared with GAAP counterparts. However, the alternative performance measures may be used opportunistically when firms fall short of certain accounting earnings benchmarks.

Keywords: informativeness; alternative performance measures; accounting earnings benchmarks; non-GAAP earnings; indicateurs alternatifs de performance; contenu informationnel; seuils de résultats comptables; résultat non-GAAP (search for similar items in EconPapers)
Date: 2023-12-14
New Economics Papers: this item is included in nep-acc, nep-eec, nep-eff and nep-eur
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Published in Finance Contrôle Stratégie, 2023, 26-4, ⟨10.4000/fcs.11504⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04672673

DOI: 10.4000/fcs.11504

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