Alternative Performance Measures: A Structured Literature Review of Research in Academic and Professional Journals.

ABSTRACT: For more than two decades, the reporting of so-called 'alternative performance measures' (APMs) has been a common phenomenon in external financial reporting. APMs are voluntarily disclosed and generally unaudited performance measures. Typically, APMs modify earnings measures calculated in accordance with generally accepted accounting principles (GAAP) by (subjectively) adjusting certain earnings components. In the academic literature, with the information motive on the one hand and the motive of (adversarial) investor influence on the other hand, two alternative explanations for the voluntary reporting of alternative performance measures are discussed, which are difficult, if not impossible, for external stakeholders to disentangle. Taking into account the recent developments in more than

SUBMITTER: Herr SB 

PROVIDER: S-EPMC9446604 | biostudies-literature | 2022

REPOSITORIES: biostudies-literature