Allen, Eric J.; Larson, Chad R.; Sloan, Richard G. - In: Journal of Accounting and Economics 56 (2013) 1, pp. 113-129
We show that accruals consist of at least two distinct underlying processes, one with positive serial correlation and the other with negative serial correlation. We also find that the accrual reversals characterizing the negatively serially correlated process are predominantly good accruals that...