The Value Relevance of Alternative Performance Measures: Evidence from the Oslo Stock Exchange
Journal article, Peer reviewed
Published version
Permanent lenke
http://hdl.handle.net/11250/2579977Utgivelsesdato
2018Metadata
Vis full innførselSamlinger
- Publikasjoner fra CRIStin - BI [1067]
- Scientific articles [2223]
Sammendrag
Companies disclose alternative performance measures (APMs), either to provide useful information to the market, or strategically in order to mislead the market. Using traditional price and return regressions, this study examines the value relevance of APMs and whether such measures are more value relevant than financial statement measures. The sample consists of the 100 largest companies listed on the Oslo Stock Exchange with quarterly data from 2012 to 2016. We find APMs to be value relevant for investors on the Oslo Stock Exchange. Furthermore, we conclude that APMs are more value relevant than financial statement measures. However, this finding should be interpreted with caution since the results are of limited statistical significance. Overall, the findings of this study suggest that companies disclose APMs to inform rather than mislead the market