shivakumar, Lakshmanan - In: Journal of Business Finance & Accounting 33 (2006-01) 1-2, pp. 1-25
Several prior studies have shown that cash flows have significantly greater impact on stock prices than accruals. We examine the implications of these findings for the post-earnings-announcement-drift anomaly. We argue that, if investors under-react to earnings news, then the larger price impact...