The Differential Persistence of Accruals and Cash Flows for Future Operating Income versus Future Profitability

By P. Fairfield, Scott Whisenant, Teri Lombardi Yohn. 2003

135 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/6a333dc596cb360c49d3e6abfa7d709cc96dba3c

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. Weili Ge
2. Catherine Schrand
3. Patricia M. Dechow
4. Richard G. Sloan
5. Andrew P. Schmidt
6. Sarah E. McVay
7. Christian Leuz
8. Shivaram Rajgopal

In Finance

1. Patricia M. Dechow
2. Catherine Schrand
3. Richard G. Sloan
4. Weili Ge
5. Andrew P. Schmidt
6. H. Jarva
7. Eric C. So
8. David A. Hirshleifer

In Strategy and Management

1. Weili Ge
2. Patricia M. Dechow
3. Catherine Schrand
4. Andrew P. Schmidt
5. Richard G. Sloan
6. Sarah E. McVay
7. Christian Leuz
8. Shivaram Rajgopal

Citations in the corpus

• The persistence of earnings and cash flows and the role of special items: Implications for the accrual anomaly (2006, unknown): “Therefore, we focus on the persistence of various measures of return on assets (see Fairfield, Whisenant, & Yohn, 2003b ).”
• The Use of Dupont Analysis by Market Participants (2008, unknown): “Fairfield et al. (2003b) argue that ΔNOA is a proxy for growth find and that it subsumes the operating accrual anomaly proposed by Sloan (1996).”
• Accrual Reversals, Earnings and Stock Returns (2013, background): “As such, the results also offer support for explanations based on diminishing returns to new investment (e.g., Fairfield et al., 2003; Wu et al., 2010).”
• The Persistence and Pricing of Earnings, Accruals, and Cash Flows When Firms Have Large Book-Tax Differences (2003, unknown): “The coefficient for this interaction term is significantly negative (–0.428) consistent with higher ROE firms having more mean reverting income.”
• Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “14 Richardson et al. (2006), however, point out that while Fairfield et al. (2003a) measure growth at the firm level, the Stigler (1963, p. 54) reference to the role of diminishing returns is made at the industry level.”
• The Persistence, Forecasting, and Valuation Implications of the Tax Change Component of Earnings (2006, methodology): “To mitigate concern that any differential persistence is driven by asset growth, I scale the dependent variables in Equations (2) and (3) by lagged average total assets so the scalar is the same as that used for the independent variables (Fairfield et al. 2003).”