Following Dechow (1994) we investigate the relative usefulness (and economic significance) of short-versus long-term accruals in improving cash flows as a measure of performance. First, we re-examine Dechow's premise that long-term accruals are expected to be less useful than short-term...

Though empirical evidence strongly supports the role of short-term operating accruals in improving operating cash flows as a measure of performance, there is little support or consensus with respect to the effect of long-term accruals. We provide evidence that long-term accruals do reduce timing...

Though empirical evidence strongly supports the role of short-term operating accruals in improving operating cash flows as a measure of performance, there is little support or consensus with respect to the effect of long-term accruals. We provide evidence that long-term accruals do reduce timing...