The association between non-financial key performance indicators and accounting and market-based performance, quality of earnings, and analysts' forecasts.

摘要

The purpose of this dissertation is to examine the link between non-financial Key Performance Indicator (KPI) disclosures and firm accounting based performance, market based performance, quality of earnings, and analysts' forecast accuracy. Millions of stocks are traded in the United States every day, and any relevant information, whether financial or non-financial can improve the efficiency and effectiveness of the capital markets. I hypothesize that proper KPI disclosures are positively associated with accounting and market-based performance, quality of earnings, and analysts' forecasts.;I have used a multivariate linear regression model to test the association between nonfinancial KPI and accounting-based performance and found no significant association. In this model, I have used return on equity, sales growth, profit margin, or return on asset as a measure of accounting performance.;To test the association between nonfinancial KPIs and market-based performance, I have used a multivariate linear regression model and found no significant association. My measure of market based performance is the change in market to book ratio of equity.;To test the association between nonfinancial KPIs and quality of earnings, I have used two measures of earnings quality, e-loading factor and earning response coefficient, and found evidence to support the association when I have used a non-linear model.;Finally, I have detected no significant association between KPI disclosures and analysts' forecast accuracy when I have used either a multivariate linear regression or a nonlinear model.;Overall results suggest that KPI performance and reporting are emerging and require companies in each industry to consistently provide KPI disclosure. I have shown that voluntary nonfinancial KPI reporting may not be informative to capital market participants. Results may be informative to policy makers, firm managers, and educators to continue research in this important area.