讲座嘉宾：许尤洋 教授（香港科技大学）
讲座题目：Non-GAAP Reporting and Innovation Efficiency
内容提要：
Because the practice of routine non-GAAP reporting may compel managers to assume that some costs related to R&D projects they oversee will be excluded from reported earnings numbers, which often happens in practice, non-GAAP reporting can encourage the managers to invest in R&D activities, improving firms’ future innovation outputs. However, this motivating effect may come at the cost of lowering innovation efficiency, i.e., the level of innovative output for a given level of input, as the said increase in innovation-related activities makes it more challenging to monitor the managers’ interim performance. Consistent with our predictions, a firm’s routine non-GAAP reporting is positively associated with its future innovation input and output but negatively associated with future innovation efficiency. We further find that effective corporate governance mechanisms mitigate the negative relation between non-GAAP reporting and innovation efficiency. Overall, our results demonstrate that non-GAAP reporting has a positive effect on innovation outputs but requires effective governance to mitigate its negative effect on innovation efficiency.
