We define accrual duration as the length of time between an accrual and its associated cash flow. Accrual duration and … accrual discretion are inextricably linked by the fundamentals of the accrual process because one side of an accrual pair is … more discretionary. We offer suggestions for the empirical implementation of the accrual duration approach, provide an …

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 …

We study the impact of short sales on accrual-based and real earnings management (EM). Based on the costs and benefits … firm engages in less accrual-based and real EM when facing short-seller scrutiny (the informational efficiency hypothesis …), or 2) a firm switches from accrual-based EM (a less sophisticated method) to real EM (a more sophisticated method), which …

controlled experiment, we predict and find that trust is impaired when the outcome of earnings management suggests that managers …

persistence of the accrual component of earnings. Another stream of the literature argues that since accruals capture growth, the … and development (R&D) represents an investment expenditure that reduces earnings but is not subject to accrual accounting …

Prior research shows that a greater level of cumulative accrual earnings management (AEM) over prior periods limits …

experiment, we predict and find that trust is impaired when the outcome of earnings management suggests that managers have put …