An Analysis of the Theories and Explanations Offered for the Mispricing of Accruals and Accrual Components

By Arthur G. Kraft, Andrew J. Leone, C. Wasley. 2006

199 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/973dd628c244b053b7909a1a197f0eeac1ab11b5

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Citations in the corpus

The Association Between Management Earnings Forecast Errors and Accruals (2009, methodology): “Equations (2) and (3) are estimated using an expanded sample that includes our original 4,443 firm-year observations where managers make earnings forecasts (MF = 1) and 14,747 firm-year observations in First Call database where managers make no earnings forecasts (NoMF = 1).22 Panel A of Table 8 pre”
Influential Observations and Inference in Accounting Research (2019, unknown): “In addition, Teoh and Zhang (2011) argue that the results of Kraft et al. (2006) are attributable to non-random deletion of firms with unusually high stock returns, and instead conclude that the association between accruals and stock returns is robust to excluding influential/outlier observations,…”
Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “The first study is that of Lang et al. (2006), who compare the extent of earnings management between a sample of non-U.”
Accounting Anomalies and Fundamental Analysis: A Review of Recent Research Advances (2010, background): “Kraft et al. (2006) note that excluding less than 1% of observations based on extreme returns greatly reduces the positive returns from low accrual firms and conclude that the resulting inverted U-shaped relation between accruals and future returns is hard to reconcile with functional fixation by in”
When Does Information Asymmetry Affect the Cost of Capital (2011, background): “Such regressions assume linearity in the underlying firm characteristic, require standard error corrections for crosssectional dependence, and are known to be prone to outlier problems (e.g., Kraft, Leone, and Wasley, 2006; Fama and French, 2008).”
Delisting Returns and Their Effect on Accounting-Based Market Anomalies (2007, unknown): “Mohanram (2004) uses −30% when delisting returns are missing for reasons related to poor performance.”