Adjusted earnings on the Stockholm Stock Exchange

Abstract: We investigate the usage of adjustments among the large cap firms listed on Nasdaq OMX Stockholm, and how it has changed between the years 2006 and 2014. We do this by identifying firms who make adjustments in their year-end reports to communicate earnings that are different from the IFRS earnings. There is an increase in the frequency of firms using adjustments in their year-end reports, and also an increase in the frequency of firms using the adjustments to communicate improved earnings, compared to IFRS earnings. We also find a trend in that the size of adjustments made have increased, but the sample size is too small for us to come to any conclusive evidence.