Errors in Estimating Accruals: Implications for Empirical Research

By Paul Hribar, Daniel W. Collins. 2002

1,833 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/4353a5407c34a2865f0dc54176c6ec261e4f88c0

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In Accounting

1. Martin Walker
2. Jeong‐Bon Kim
3. Beatriz García Osma
4. Weili Ge
5. Patricia M. Dechow
6. Shivaram Rajgopal
7. Christian Leuz
8. Liandong Zhang

In Strategy and Management

1. Martin Walker
2. Jeong‐Bon Kim
3. Beatriz García Osma
4. Shivaram Rajgopal
5. Weili Ge
6. Sarah E. McVay
7. Daniel A. Cohen
8. Juan Manuel García Lara

Citations in the corpus

• Do Accruals Drive Firm‐Level Stock Returns? A Variance Decomposition Analysis (2004, neutral): “Although statement of cash flow data are less noisy [Hribar and Collins (2002)], they impose severe limitations on the sample size.”
• Biased Forecasts or Biased Earnings? The Role of Reported Earnings in Explaining Apparent Bias and Over/Underreaction in Analysts' Earnings Forecasts (2003, positive): “For the purposes of sensitivity tests, we also examine a measure of unexpected accruals that excludes nonrecurring and special items (see, Hribar and Collins, 2002), and use this adjusted measure in conjunction with Zacks’ consensus forecast estimates and actual reported earnings, which also…”
• The Accrual Anomaly: International Evidence (2003, neutral): “While this is typical in international accounting research (e.g., Bhattacharya et al. 2003; Land and Lang 2003; Leuz et al. 2003), Hribar and Collins (2002) show that accruals derived from balance sheet data contain significant measurement error, especially for firms involved in mergers and…”
• Corporate Tax Avoidance and Stock Price Crash Risk: Firm-Level Analysis (2011, positive): “…Desai–Dharmapala (2006) residual book-tax difference, which equals the residual from the following firm fixed effects regression: BTi,t = β1TAi,t + μi + εi,t, where BT is the total book-tax difference and TA is total accruals measured using the cash flow method of Hribar and Collins (2002).”
• The Role of Accruals in Asymmetrically Timely Gain and Loss Recognition (2005, positive): “The data are obtained from the CRSP and annual Compustat files.9 Accruals and cash flow data are obtained from cash flow statements, and are not estimated indirectly from balance sheet data (Hribar and Collins 2002).”