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...

Ramanna and Roychowdhury (2010) advance two interesting questions about the determinants of accounting discretion: Do firms use accounting discretion to mitigate the potential economic consequences of negative publicity? And, do firms’ political connections provide an additional motivation to...