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We consider stock markets in 20 countries to investigate whether the accrual anomaly (Sloan 1996), characterized by U.S. stock prices overweighting the role of accrual persistence, is a local manifestation of a global phenomenon. We explore whether the occurrence of the anomaly is related to...
Persistent link: https://www.econbiz.de/10012780198
We investigate whether the accruals anomaly documented by Sloan (1996) in the accounting literature is distinct from the value-glamour anomaly documented in the finance literature. We find that the accruals strategy earns abnormal returns incremental to past sales growth, book-to-market and...
Persistent link: https://www.econbiz.de/10014115087
We examine the cost-effectiveness, from the shareholders' perspective, of the accounting standards issued by the FASB during 1973-2009. In particular, we evaluate (i) the stock market reactions of firms affected by the standards surrounding events that changed the probability of issuance of...
Persistent link: https://www.econbiz.de/10012950531
We examine the cost-effectiveness, from the shareholders' perspective, of the accounting standards issued by the FASB during 1973-2009. In particular, we evaluate (i) the stock market reactions of firms affected by the standards surrounding events that changed the probability of issuance of...
Persistent link: https://www.econbiz.de/10012959260
We consider stock markets in 20 countries to investigate whether the accruals anomaly (Sloan 1996), characterized by U.S. stock prices overweighting the role of accrual persistence, is a local manifestation of a global phenomenon. In addition, we structure our analysis to determine if the...
Persistent link: https://www.econbiz.de/10012737582
Sloan (1996) and several follow up papers show that the stock market behaves as though it cannot understand the implications of accruals for future earnings. We propose and find evidence consistent with the hypothesis that risk-averse arbitrageurs are unable to eliminate accrual related...
Persistent link: https://www.econbiz.de/10012738500
A number of recent studies assume market efficiency and hence interpret an association between stock returns and leading indicators as evidence of the contribution of such indicators to future earnings. We explicitly examine (i) whether one leading indicator - order backlog - has predictive...
Persistent link: https://www.econbiz.de/10012740503
Using a sample of petroleum refining firms, this paper provides evidence that earnings sensitivity measures analogous to those mandated by the SEC's (1997) new market risk disclosure rules are positively associated with stock market determined oil price exposures. We also find that earnings...
Persistent link: https://www.econbiz.de/10012743994
We recently conducted a comprehensive survey that analyzes how senior financial executives make decisions related to performance measurement and voluntary disclosure. In particular, we ask CFOs what earnings benchmarks they care about and which factors motivate executives to exercise discretion,...
Persistent link: https://www.econbiz.de/10012734913
We examine several explanations drawn from prior academic research and current popular press anecdotes for the unprecedented level of underpricing in Internet IPOs. Our sample consists of 342 Internet firms that went public between 1988 and 1999 and a matched sample of 249 non-Internet IPOs. The...
Persistent link: https://www.econbiz.de/10012710405