accrual-based trading strategies using the balance sheet method documented in Sloan (1996). This paper contributes to the … accruals literature by investigating and documenting the systematic errors in estimating accruals in the presence of mergers … returns to firms that engage in mergers and have high accruals, which to our knowledge is not previously documented. We …

demonstrate that the majority of these accrual reversals relate to ‘good' accruals that: (i) correctly anticipate future benefits … of accruals related to firm growth and accrual estimation error …We document pervasive evidence of reversals in firm-level working capital accruals over adjacent fiscal years. We …

and earnings manipulation, the downward payoff of loser stocks with high accruals largely drives the accrual …We establish a robust link between momentum and accruals. Momentum profitability is mostly concentrated in firms with … high accruals. Cross-sectional characteristics of momentum previously documented do not subsume the effect of accruals on …

We examine the information content of high accruals momentum defined as a string of high discretionary accruals for … four consecutive years. We find that firms that consistently report high levels of discretionary accruals experience low … subsequent returns. The results are robust after we control for annual levels of discretionary accruals for the estimation period …

Using a battery of look-ahead-bias free measures of accruals quality (AQ), we find a strong and long lasting negative …

This paper examines the relationship between accrual components and stock trading costs in China and finds that both … abnormal and normal accruals are associated with these costs. Moreover, negative accruals, both abnormal and normal, have a … greater influence on stock trading costs than positive accruals because of short-selling constraints in the Chinese stock …

tool to assess earnings quality based on accrual rates. This allows regulators and standard-setters to provide more …