profit companies, as well as industry groups. The same results were obtained for each earnings component, namely, innate and … tool to assess earnings quality based on accrual rates. This allows regulators and standard-setters to provide more …This study examines whether idiosyncratic risk significantly affects earnings quality in non-financial companies listed …

persistence of the accrual component of earnings and associated mispricing documented in Sloan (1996) are driven by a combination … demonstrate that the majority of these accrual reversals relate to ‘good' accruals that: (i) correctly anticipate future benefits …; (ii) lead to higher earnings persistence; and (iii) are not associated with security mispricing. We show that the lower …

increases more earning persistence than accruals. Therefore, deductible temporary difference may be an indicator of earnings …While financial statements are the primary source of information about a firm, they tend to be under earnings … temporary differences and the taxable temporary differences. In addition, we analyze which of the two earnings components are …

Recent work shows that the role of accrual accounting in mitigating the timing differences between cash flows and … noise in the accrual accounting process, sophisticated users of financial information – financial analysts, are able to … extract useful information from the reported accrual accounting process, and use them in their forecasting process, are able …

industry-wide cash flows is the most persistent component of earnings while firm-specific accruals is the least persistent …-specific component. This paper provides evidence on this assertion and tests whether investors misprice these components of earnings …. Consistent with predictions, we find greater persistence in the industry-wide component of earnings that is not fully recognized …

the informational role of earnings, cash flows and accruals in predicting future stock returns and the key role played by … the earnings response coefficient. It also suggests that the ‘accrual anomaly' can be explained rationally. Accounting … earnings. In particular, it is the deviation of (scaled) accruals from their long run mean rate that is vital in explaining the …

reporting objectives; the commonly used are the accrual-based and cash-based earnings management. The literature reveals that …. Accrual-based earnings management was measured through the modified-Jones model, while cash-based earnings management was …-based earnings management and employ the two strategies as substitutes, which explains the strong and negative effect of accrual …

still subject to debate. This study investigates whether various partitions of earnings involving combinations of a cash … flow measure of performance and measures of current accruals and non-current accruals improve the ability to explain market … values in the UK relative to using earnings alone. Using a valuation model-based methodology, and employing a UK sample of …

and earnings manipulation, the downward payoff of loser stocks with high accruals largely drives the accrual … amount of income-decreasing special items in subsequent years. Most of momentum profit among high-accrual firms is … attributable to the high discretionary accrual group. Our findings indicate that due to the joint force of earnings overestimation …