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Essays On Non-Gaap Earnings Disclosure, Hangsoo Kyung

Dissertations, Theses, and Capstone Projects

Essay1: The U.S. Securities and Exchange Commission (SEC) issued new Compliance and Disclosure Interpretations (CDI) in 2010, relaxing enforcement of Regulation G and Regulation S-K. The nonbinding nature and opaque procedures behind interpretive guidance cast doubt as to whether SEC staff interpretations changed a firm's voluntary disclosure. In this paper, I find that firms more frequently disclose non-GAAP earnings after the issuance of new CDI, suggesting that nonbinding SEC staff interpretations influence corporate disclosure practice. Compared to the pre-CDI period, non-GAAP exclusions are of higher quality in the post-CDI period. The exclusion quality of firms who started to disclose non-GAAP …