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The information content of non-GAAP earnings
Introduction to the PhD research:
The proposed research aims to examine the effects of composition of Non-GAAP Earnings (NGE), consistency of NGE, and emphasis on NGE on the market price and volume of stock. Public firms, financial analysts, and investors have paid more attention to non-GAAP earnings since NGE, excluding special items and arbitrary accounting adjustments from GAAP earnings, substantially providing greater information of firm performance. The proposed research will use the event study methodology. The proposed research will help policy makers understand the influence of composition, consistency and emphasis on the impact of NGE on the market parameters, stock price and stock volume. As the extant research illustrates a lack of oversight on NGE disclosure, it will be of interest to accounting standard setters and financial market regulators and be capable of casting new light on perfecting the current NGE regime. It can also shed new light on guidance for investors on distinguishing informative NGE from misleading NGE.
• Professor Asheq Rahman
• Dr Humayun Kabir