This paper examines the relationship between accrual components and stock trading costs in China and finds that both … abnormal and normal accruals are associated with these costs. Moreover, negative accruals, both abnormal and normal, have a … greater influence on stock trading costs than positive accruals because of short-selling constraints in the Chinese stock …

In this paper, I show a generalization of the negative relation of traditional accruals and percent accruals with … future returns in 11 of 16 European countries. Positive abnormal returns from hedge portfolios on both accrual measures … summarize the economic significance of this generalization. The magnitude of returns obtained from traditional accruals is …