increases more earning persistence than accruals. Therefore, deductible temporary difference may be an indicator of earnings …While financial statements are the primary source of information about a firm, they tend to be under earnings … temporary differences and the taxable temporary differences. In addition, we analyze which of the two earnings components are …

Recent work shows that the role of accrual accounting in mitigating the timing differences between cash flows and … noise in the accrual accounting process, sophisticated users of financial information – financial analysts, are able to … extract useful information from the reported accrual accounting process, and use them in their forecasting process, are able …

industry-wide cash flows is the most persistent component of earnings while firm-specific accruals is the least persistent …-specific component. This paper provides evidence on this assertion and tests whether investors misprice these components of earnings …. Consistent with predictions, we find greater persistence in the industry-wide component of earnings that is not fully recognized …

the informational role of earnings, cash flows and accruals in predicting future stock returns and the key role played by … the earnings response coefficient. It also suggests that the ‘accrual anomaly' can be explained rationally. Accounting … earnings. In particular, it is the deviation of (scaled) accruals from their long run mean rate that is vital in explaining the …