Chen, Linda H. - In: Review of Pacific Basin Financial Markets and Policies … 16 (2013) 03, pp. 1350020-1
This paper examines the effect of income smoothing on information uncertainty, stock returns, and cost of equity. I … show that income smoothing through both total accruals and discretionary accruals tends to reduce firms' information … uncertainty, as measured by stock return volatility, analyst earnings forecast dispersion, and analyst earnings forecast error …