demonstrate that the majority of these accrual reversals relate to ‘good' accruals that: (i) correctly anticipate future benefits … persistence of the accrual component of earnings and associated mispricing documented in Sloan (1996) are driven by a combination … of accruals related to firm growth and accrual estimation error …

accrual persistence. We construct an extensive dataset of more than 100,000 different accrual items that Compustat aggregates … into a single accrual data item, FOPO. We map these accrual items into 32 different accrual types over a 21-year span …. Consistent with our prediction, we find considerable variation in accrual persistence across the 32 accrual types. Furthermore …