This paper examines empirically whether sophisticated speculative short sellers can detect earnings management by targeting stocks with large income-increasing discretionary accruals and high total accruals. Prior research indicates that total accruals are overpriced and this overpricing is...

A considerable body of evidence, both archival and experimental, suggests that accounting accruals are heterogeneously interpreted by investors. In this study, I examine whether the information asymmetry among investors arising from this heterogeneous interpretation, implied in these empirical...

This study examines the relation between accruals quality and price synchronicity, a measure of the relative amount of firm-specific information reflected in price. Higher accruals quality imply better quality earnings news, hence, more firm-specific information is incorporated into price for...