demonstrate that the majority of these accrual reversals relate to ‘good' accruals that: (i) correctly anticipate future benefits … of accruals related to firm growth and accrual estimation error …We document pervasive evidence of reversals in firm-level working capital accruals over adjacent fiscal years. We …

accrual-based trading strategies using the balance sheet method documented in Sloan (1996). This paper contributes to the … accruals literature by investigating and documenting the systematic errors in estimating accruals in the presence of mergers … returns to firms that engage in mergers and have high accruals, which to our knowledge is not previously documented. We …

Using a battery of look-ahead-bias free measures of accruals quality (AQ), we find a strong and long lasting negative …

and earnings manipulation, the downward payoff of loser stocks with high accruals largely drives the accrual …We establish a robust link between momentum and accruals. Momentum profitability is mostly concentrated in firms with … high accruals. Cross-sectional characteristics of momentum previously documented do not subsume the effect of accruals on …

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 …

misprice the information contained in accruals. My study shows that in the four year period prior to accrual recognition … period accruals and future returns. In addition, I link the accrual anomaly and the value/growth anomaly to a common economic …Prior studies employ a two period empirical model and interpret the negative association between accruals in period one …

We find that IPO firms engage in real and accrual earnings management during the IPO and that big-N audit firms … constrain discretionary expenses-based and accrual-based manipulations. The restriction of these forms of earnings management … leads IPO firms to resort to a higher level of sales-based manipulation. Our results show that both sales-based and accrual …

We document that historical patterns of accruals seasonality predict future stock returns. Firms with historically … larger accruals in a given quarter of the year earn lower stock returns when those accruals are expected to be announced. The … accruals seasonality spread is significant only in the post-2001 period when there are increased accruals-based arbitrage …

the earnings volatility of the firm's own reported fiscal year. To the extent managers use accruals to reduce annual … find that cash flow and accrual patterns for firms with high values of our smoothing measure are more consistent with … primarily driven by accruals rather than cash flows. Overall, we contribute to the literature exploring alternative explanations …