Lori Solsma, Ph.D.
Lori Solsma is an assistant
professor of accounting whose
primary research interest is in
the area of voluntary disclosures,
which provides valuable insight
into voluntary disclosure behavior
and opens up questions into the
motives behind those behaviors.
Solsma’s research began while
she was in graduate school at
the University of Mississippi,
where she began two manuscripts. One, titled “Factors
Impacting the Credibility of Website Disclosures,”
was published in the
Journal of Financial Reporting &
The other, titled “Exploring Early 20 th
Century Fraud Engagements,” is currently in revision
after a first-round review at
Accounting History Review
Solsma has also produced two additional manuscripts
that stem from her Ph.D. dissertation with the purpose
of observing and comparing non-GAAP disclosure
behavior of U.S.-listed foreign firms and U.S. firms.
The first manuscript, titled “U.S.-Listed Foreign
Firms’ Non-GAAP Financial Performance Disclosure
Behavior,” was published in the
Journal of International
The article reports similar disclosure
frequencies for U.S. firms and U.S.-listed foreign firms.
However, disclosure and adjustment characteristics
provide evidence indicating that U.S. firms engage in
aggressive non-GAAP reporting behaviors (reporting
income-increasing adjustments and adjusting GAAP
numbers with a greater magnitude and with a higher
number of adjustments) equally or more so than U.S.-
listed foreign firms.
The second manuscript, titled “Non-GAAP
Disclosure Practices of Firms Applying IFRS,” examines
the impact that reporting standard (IFRS or U.S.
GAAP) has on non-GAAP disclosure behavior. “Studies
have found that the accounting quality of foreign firms
that have adopted IFRS is generally greater than that
of firms continuing to use domestic GAAP,” Solsma
explained. “For that reason, I propose that reporting
standard (IFRS or U.S. GAAP) will have an impact on
non-GAAP disclosure behavior. Non-GAAP disclosure
behavior impacts investors because the information
provided by non-GAAP financial performance
measures, as reported in press releases, has the potential
to influence perceptions of firm performance in a
Solsma received a faculty development grant from
the Beacom School of Business to further her research
during the summer of 2011. Currently, she is in the initial
stages of designing a study to examine management’s
non-GAAP forecasts and plans to use that framework to
help understand the differences between GAAP and non-
Solsma earned her Ph.D. in accounting from the
University of Mississippi and both her M.B.A. and B.S.
from the University of South Dakota.
Solsma received a faculty
development grant from the
Beacom School of Business to
further her research during the
summer of 2011.
Faculty Research Paves
Three Beacom School of Business professors
publ i sh in top-t i er profess ional journals