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The information content of alternative performance measures in the European context
[Le contenu informationnel des indicateurs alternatifs de performance dans le contexte européen]

Author

Listed:
  • Gaelle Lenormand

    (UR - Université de Rennes)

  • Hoang Nguyen

    (Huế University)

  • Lionel Touchais

    (UR - Université de Rennes)

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.

Suggested Citation

  • Gaelle Lenormand & Hoang Nguyen & Lionel Touchais, 2023. "The information content of alternative performance measures in the European context [Le contenu informationnel des indicateurs alternatifs de performance dans le contexte européen]," Post-Print hal-04672673, HAL.
    • Handle: RePEc:hal:journl:hal-04672673
    DOI: 10.4000/fcs.11504
    Note: View the original document on HAL open archive server: https://hal.science/hal-04672673
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    More about this item

    Keywords

    informativeness; alternative performance measures; accounting earnings benchmarks; non-GAAP earnings; indicateurs alternatifs de performance; contenu informationnel; seuils de résultats comptables; résultat non-GAAP;
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