Non-GAAP earnings reporting and firm valuation – Complete Phd and Masters Thesis

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Introduction

Non-GAAP earnings reporting has gained significant attention in recent years as companies increasingly rely on non-standard metrics to communicate their financial performance to stakeholders. While GAAP (Generally Accepted Accounting Principles) provides a standardized framework for financial reporting, many companies supplement their GAAP earnings with non-GAAP measures to provide a more comprehensive view of their financial health. This practice has raised concerns about the transparency and reliability of financial reporting, as non-GAAP measures can be subject to manipulation and misinterpretation.

This thesis explores the relationship between non-GAAP earnings reporting and firm valuation, aiming to understand how investors and analysts perceive non-GAAP measures and how they impact the valuation of companies. By examining the use of non-GAAP measures in financial reporting and their implications for firm valuation, this study seeks to provide insights into the decision-making process of market participants and the implications for financial markets.

Chapter 1: Introduction
1.1 Introduction
1.2 Background of study
1.3 Problem Statement
1.4 Objective of study
1.5 Limitation of study
1.6 Scope of study
1.7 Significance of study
1.8 Structure of the Thesis
1.9 Definition of terms

Chapter 2: Literature Review
2.1 Evolution of non-GAAP reporting
2.2 Motivations for non-GAAP reporting
2.3 Implications of non-GAAP reporting on firm valuation
2.4 Criticisms of non-GAAP reporting
2.5 Regulatory environment of non-GAAP reporting
2.6 Investor perception of non-GAAP measures
2.7 Analysts’ use of non-GAAP measures
2.8 Comparing GAAP and non-GAAP measures
2.9 Relationship between non-GAAP measures and stock performance
2.10 Empirical studies on non-GAAP reporting

Chapter 3: Research Methodology
3.1 Research design
3.2 Data collection
3.3 Variable selection
3.4 Hypotheses development
3.5 Data analysis techniques
3.6 Sample selection
3.7 Research models
3.8 Limitations of methodology

Chapter 4: Findings and Discussion
4.1 Descriptive statistics
4.2 Relationship between non-GAAP measures and firm valuation
4.3 Impact of non-GAAP reporting on investor decisions
4.4 Implications for financial markets
4.5 Robustness checks
4.6 Limitations of findings
4.7 Comparison with previous studies
4.8 Managerial implications
4.9 Policy recommendations

Chapter 5: Conclusion and Summary
5.1 Summary of findings
5.2 Contribution to literature
5.3 Implications for practice
5.4 Directions for future research
5.5 Conclusion

Thesis Overview

The use of non-GAAP measures in financial reporting has become a common practice among companies seeking to provide a more comprehensive view of their financial performance. This thesis aims to explore the relationship between non-GAAP earnings reporting and firm valuation, shedding light on the motivations behind the use of non-GAAP measures and their implications for investors and analysts.

Chapter 1 provides an introduction to the topic, outlining the background of the study, the problem statement, objectives, limitations, scope, significance, structure of the thesis, and key definitions. Chapter 2 presents a comprehensive review of the literature on non-GAAP reporting, covering the evolution of non-GAAP reporting, motivations, implications on firm valuation, criticisms, regulatory environment, investor perception, analysts’ use, comparison with GAAP measures, and empirical studies.

Chapter 3 details the research methodology, including research design, data collection, variable selection, hypothesis development, data analysis techniques, sample selection, research models, and limitations. Chapter 4 presents the findings of the study and provides a discussion on the relationship between non-GAAP measures and firm valuation, impact on investor decisions, implications for financial markets, robustness checks, limitations, comparison with previous studies, managerial implications, and policy recommendations.

Chapter 5 concludes the thesis with a summary of findings, contribution to the literature, implications for practice, directions for future research, and concluding remarks on the topic of non-GAAP earnings reporting and firm valuation. By examining the use of non-GAAP measures in financial reporting and their impact on firm valuation, this thesis seeks to contribute to the understanding of financial reporting practices and their implications for stakeholders in the investment community.

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