Results 241 to 250 of about 18,621 (269)

Corporate cash savings and discretionary accruals

China Finance Review International, 2020
PurposeThis paper assesses how discretionary accruals (DAs) affect corporate cash savings policies and the motivation behind this cash saving behavior and, also whether the linkage between DAs and cash saving affect the market-perceived cash value.Design/methodology/approachWe construct the measure of DAs using the previous five-year average ...
Jianjun Jia, Lili Shao, Zhenzhen Sun, Fang Zhao   +3 more
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Overvalued Equity and Discretionary Accruals

SSRN Electronic Journal, 2006
This paper provides evidence consistent with the overvaluation hypothesis (Jensen 2005). We categorize firms as overvalued if they are in the top quintile based on beginning of year price-earnings ratio, prior year abnormal return, or a classification technique that uses both the lagged price-earnings ratio and abnormal return.
Terrance R. Skantz, Robert Houmes
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Predicting Stock Market Returns with Aggregate Discretionary Accruals

SSRN Electronic Journal, 2006
ABSTRACTWe find that the positive relation between aggregate accruals and one‐year‐ahead market returns documented in Hirshleifer, Hou, and Teoh [2009] is driven by discretionary accruals but not normal accruals. The return forecasting power of aggregate discretionary accruals is robust to choices of sample periods, return measurements, estimation ...
Qi, R, Kang, Q, Liu, Q
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Industry-Specific Discretionary Accruals and the Accrual Anomaly

SSRN Electronic Journal, 2012
I motivate and implement a methodology that decomposes a firm’s discretionary accruals into a firm-specific and an industry-specific component. I find that the “accruals anomaly” (Sloan 1996) – the finding that firms with high discretionary accruals subsequently earn negative abnormal returns – is driven by firm-specific discretionary accruals.
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Highly Valued Equity and Discretionary Accruals

Journal of Business Finance & Accounting, 2010
Abstract:  Overvalued equity provides a strong incentive for managers to report earnings that do not disappoint the market ( Jensen, 2005). We find that this can be extended to highly valued equity more generally. In the year following the classification as highly valued and compared to firms with less extreme valuations, highly valued firms have ...
Robert E. Houmes, Terrance R. Skantz
openaire   +1 more source

Can Managers Use Discretionary Accruals to Ease Financial Constraints? Evidence from Discretionary Accruals Prior to Investment

The Accounting Review, 2013
ABSTRACT: Despite a large literature on discretionary accruals, how the use of discretionary accruals impacts corporate financial decisions is not well understood. We hypothesize that a financially constrained firm with valuable projects can use discretionary accruals to credibly signal positive prospects, enabling it to raise capital to
Linck, James S., Netter, Jeffry M., Shu, Tao   +2 more
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The pricing of discretionary accruals

Journal of Accounting and Economics, 1996
Abstract This paper examines if the stock market prices discretionary accruals. Evidence reveals that, on average, the market attaches value to discretionary accruals. This evidence is consistent with two alternative scenarios: (1) managerial discretion improves the ability of earnings to reflect economic value, and (2) discretionary accruals are ...
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Firm growth and the pricing of discretionary accruals

Review of Quantitative Finance and Accounting, 2012
This paper examines how firm growth conditions the pricing of discretionary accruals. Given the rich growth opportunities and high information asymmetry in high-growth firms, we expect that managers have incentives to use discretionary accruals, especially income increasing (positive) discretionary accruals, to signal favorable private information to ...
Qiang Wu, Ashok Robin
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Discretionary Accounting Accruals, Managers' Incentives and Audit Fees

SSRN Electronic Journal, 2003
AbstractThis paper examines the linkages between discretionary accruals (DAs), managerial share ownership, management compensation, and audit fees. It draws on the theory that managers of firms with high management ownership are likely to use DAs to communicate value‐relevant information, while managers of firms with high accounting‐based compensation ...
Ferdinand A. Gul, Charles J. P. Chen, Judy S. L. Tsui   +2 more
openaire   +1 more source

The Stewardship Role of Analyst Forecasts, and Discretionary Versus Non-discretionary Accruals

European Accounting Review, 2011
We examine the interaction between discretionary and non-discretionary accruals in a stewardship setting. Contracting includes multiple rounds of renegotiation based on contractible accounting information and non-contractible but more timely non-accounting information.
Christensen, Peter Ove, Frimor, Hans, Sabac, Florin   +2 more
openaire   +3 more sources