on the type of loss: they value only the aggregate accruals component of persistent losses and only the aggregate cash …We hypothesize that when confronted with a loss, investors price earnings conditional on the expected probability of … (low probability of reversal) and transitory (high probability of reversal) losses, we show the pricing of losses, as well …

and accruals to explain dividends. Findings – It is found that both cash flows and accruals (earnings) possess significant … artificially boost reported earnings. Short-term accruals are an obvious focus for such activities. Originality/value – The paper …Purpose – Accruals data reflect managers’ judgements and estimates. The purpose of this paper is to examine whether …