We examine the information content of high accruals momentum defined as a string of high discretionary accruals for … four consecutive years. We find that firms that consistently report high levels of discretionary accruals experience low … subsequent returns. The results are robust after we control for annual levels of discretionary accruals for the estimation period …

forecast errors increases to the degree that firms diversify internationally, (2) post-earnings-announcement drift (PEAD) based …. When we replicate our tests using seasonally differenced earnings, we fail to observe patterns similar to those using … analyst forecast errors. Overall, the results of our study suggest that investors' underreaction to announced earnings is a …