{"id":3683,"date":"2022-06-05T17:13:14","date_gmt":"2022-06-05T15:13:14","guid":{"rendered":"https:\/\/frjournal.eu\/journal\/?p=3683"},"modified":"2022-07-29T16:10:10","modified_gmt":"2022-07-29T14:10:10","slug":"the-role-of-the-big-four-audit-firms-and-the-legal-system-in-non-gaap-comparability","status":"publish","type":"post","link":"https:\/\/frjournal.eu\/journal\/2022\/06\/05\/the-role-of-the-big-four-audit-firms-and-the-legal-system-in-non-gaap-comparability\/","title":{"rendered":"The role of the Big Four audit firms and the legal system in non-GAAP comparability"},"content":{"rendered":"<p>Riccardo Macchioni, Alessandra Allini, Martina Prisco \/ Financial Reporting \/ 1-2022<\/p>\n<hr \/>\n<p>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 information 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 endorsed ED\/2019\/7 General Presentation and Disclosures.<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<div class=\"fusion-button-wrapper fusion-aligncenter\"><style type=\"text\/css\" scoped=\"scoped\">.fusion-button.button-1 .fusion-button-text, .fusion-button.button-1 i {color:#ffffff;}.fusion-button.button-1 {border-width:0px;border-color:#ffffff;}.fusion-button.button-1 .fusion-button-icon-divider{border-color:#ffffff;}.fusion-button.button-1:hover .fusion-button-text, .fusion-button.button-1:hover i,.fusion-button.button-1:focus .fusion-button-text, .fusion-button.button-1:focus i,.fusion-button.button-1:active .fusion-button-text, .fusion-button.button-1:active{color:#ffffff;}.fusion-button.button-1:hover, .fusion-button.button-1:focus, .fusion-button.button-1:active{border-width:0px;border-color:#ffffff;}.fusion-button.button-1:hover .fusion-button-icon-divider, .fusion-button.button-1:hover .fusion-button-icon-divider, .fusion-button.button-1:active .fusion-button-icon-divider{border-color:#ffffff;}.fusion-button.button-1{width:auto;}<\/style><a class=\"fusion-button button-flat fusion-button-round button-large button-default button-1\" target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.francoangeli.it\/riviste\/SchedaRivista.aspx?IDArticolo=70950&amp;Tipo=Articolo%20PDF&amp;lingua=it&amp;idRivista=163\"><span class=\"fusion-button-text\">Read Article<\/span><\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Riccardo Macchioni, Alessandra Allini, Martina Prisco \/ Financial Reporting \/ 1-2022 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 information on the non-GAAP measures disclosed in [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"quote","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[30,1],"tags":[461,460,237,462,463],"class_list":["post-3683","post","type-post","status-publish","format-quote","hentry","category-browse-the-journal","category-financial-reporting","tag-big-four-audit-firms","tag-financial-statement-comparability","tag-ias-1","tag-legal-system","tag-non-gaap-measures","post_format-post-format-quote"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The role of the Big Four audit firms and the legal system in non-GAAP comparability | Financial Reporting Journal<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/frjournal.eu\/journal\/2022\/06\/05\/the-role-of-the-big-four-audit-firms-and-the-legal-system-in-non-gaap-comparability\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The role of the Big Four audit firms and the legal system in non-GAAP comparability | Financial Reporting Journal\" \/>\n<meta property=\"og:description\" content=\"Riccardo Macchioni, Alessandra Allini, Martina Prisco \/ Financial Reporting \/ 1-2022 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 information on the non-GAAP measures disclosed in [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/frjournal.eu\/journal\/2022\/06\/05\/the-role-of-the-big-four-audit-firms-and-the-legal-system-in-non-gaap-comparability\/\" \/>\n<meta property=\"og:site_name\" content=\"Financial Reporting Journal\" \/>\n<meta property=\"article:published_time\" content=\"2022-06-05T15:13:14+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-07-29T14:10:10+00:00\" \/>\n<meta name=\"author\" content=\"Laura Bini\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Laura Bini\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" 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