Accrual Reliability, Earnings Persistence and Stock Prices

By Scott A. Richardsona, Richard G. Sloanb, Mark T. Solimanc, Irem Tunaa. 2005

1,415 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/5c84e51adf1645f587ac26af9fde9cc51a6f9a1c

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Sarah E. McVay
2. Martin Walker
3. Weili Ge
4. Beatriz García Osma
5. Shivaram Rajgopal
6. Patricia M. Dechow
7. David A. Hirshleifer
8. Catherine Schrand

In Finance

1. David A. Hirshleifer
2. Lasse Heje Pedersen
3. Kewei Hou
4. Sarah E. McVay
5. Tobias J. Moskowitz
6. Robert Novy-Marx
7. Martin Walker
8. Siew Hong Teoh

In Strategy and Management

1. Shivaram Rajgopal
2. Beatriz García Osma
3. Sarah E. McVay
4. Weili Ge
5. Martin Walker
6. Terry Shevlin
7. Patricia M. Dechow
8. Juan Manuel García Lara

Citations in the corpus

• Accounting Conservatism and Board of Director Characteristics: an Empirical Analysis (2007, neutral): “Averaging over a number of periods also ensures that the effects of any temporary large accruals are mitigated, as accruals tend to reverse within a one to two-year period (Richardson et al., 2005).”
• The supraview of return predictive signals (2013, positive): “In doing so, we have sought to take an initial step of response to the call made by Richardson et al. (2010) that researchers in the RPS area begin to move away from what they describe as ‘‘the haphazard nature of this line of research [into RPS]’’ and instead move toward imposing more structure on…”
• Digesting Anomalies: An Investment Approach (2015, methodology): “Outside trading frictions, the Titman, Wei, and Xie (2004) abnormal investment anomaly yields −0.27% per month, the Richardson et al. (2005) total accrual anomaly yields −0.19%, and the Piotroski (2000) F -score earns 0.37%.”
• Influential Observations and Inference in Accounting Research (2019, positive): “The study we selected (Richardson et al. 2005, hereafter RSST) examined the differential persistence of various types of accruals on overall earnings’ persistence.”
• Short Sellers and Financial Misconduct (2010, neutral): “Richardson (2003) fails to find evidence that short sellers target firms with high accruals.”
• Limited Investor Attention and Stock Market Misreactions to Accounting Information (2011, positive): “In consequence, the conditions for the accrual anomaly to exist in our model differ from that suggested by Sloan(1996), that accruals be a stronger forecaster than cash flows of future earnings.”