The role of the Big Four audit firms and the legal system in non-GAAP comparability

Titolo Rivista: FINANCIAL REPORTING
Autori/Curatori: Riccardo Macchioni, Alessandra Allini, Martina Prisco
Anno di pubblicazione: 2022 Fascicolo: 1 Lingua: Italiano
Numero pagine: 38 P. 79-116 Dimensione file: 273 KB
DOI: 10.3280/FR2022-001003
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The purpose of this paper is to investigate whether the firms with the same Big Four audit firm and from the same legal system disclose more comparable non-GAAP measures. Using 23,436 pairs of European firms, we hand-collected infor-mation on the non-GAAP measures disclosed in the statement of comprehensive income. The results showed that the firms with the same Big Four audit firm or from the same legal system are positively and significantly associated with non-GAAP comparability. Our work adds to the studies on accounting comparability. Furthermore, it provides fresh insights that support the latest IASB activity on the Primary Financial Statement project, under which the standard setter has en-dorsed ED/2019/7 General Presentation and Disclosures.

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Riccardo Macchioni, Alessandra Allini, Martina Prisco, The role of the Big Four audit firms and the legal system in non-GAAP comparability in "FINANCIAL REPORTING" 1/2022, pp 79-116, DOI: 10.3280/FR2022-001003