<scp>Non‐GAAP</scp> earnings and executive compensation: An experiment

Literature suggests investors react to the presence, presentation and prominence of non-GAAP earnings disclosures. We extend this literature by considering purpose disclosures their effect on investors' judgements decisions. find when are used determine executive compensation, assign a higher evaluation financial performance invest more capital. Consistent with attribution theory, our mediation model finds that using remunerate executives strengthens informative perception disclosures, influencing investment decision. Contrary prior literature, we intentionally rely in decision-making.