Investor Sophistication and the Mispricing of Accruals

By Daniel W. Collins, Guojin Gong, Paul Hribar. 2003

391 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/cd66ce05aeaa8838be3dfdd16618ed71801172a3

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Citations in the corpus

Do institutional investors exploit the post-earnings announcement drift? (2005, neutral): “Gompers and Metrick (2001) find that institutional ownership is systematically related to MV and BM.”
The Role of Newswires in Screening and Disseminating Value-Relevant Information in Periodic SEC Reports (2011, neutral): “…we add controls for idiosyncratic volatility (Arbrisk) and trading volume (Volume) given that trading frictions can dampen the demand for corporate accounting information even among sophisticated investors (Collins et al. 2003; Ali et al. 2003; Mashruwala et al. 2006; D’Souza et al. 2010b).”
Limited Investor Attention and Stock Market Misreactions to Accounting Information (2011, neutral): “with lower ownership by active institutional investors ( Collins, Gong, and Hribar (2003) ).”
Beating Earnings Benchmarks and the Cost of Debt (2008, background): “…investor sophistication and richer firm information environments (e.g., Ayers and Freeman 2003; Bartov et al. 2000; Battalio and Mendenhall 2005; Collins et al. 2003; Hand 1990; Jiambalvo et al. 2002; and Walther 1997). earnings benchmarks, the most salient benchmark in assuring bondholders…”
Earnings Manipulation and Expected Returns (2013, background): “Other related studies have examined whether different market constituents understand the implications of accruals (Bradshaw, Richardson, and Sloan 2001; Beneish and Vargus 2002; Collins, Gong, and Hribar 2003; Barth and Hutton 2004).”
Customer-Base Concentration: Implications for Firm Performance and Capital Markets (2012, neutral): “Prior studies (e.g., Hong et al. 2000; Collins et al. 2003) find that mispricings tend to be”
Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “While Collins et al. (2003) suggest that these”
CEO Tenure and Earnings Management (2015, neutral): “Institutional investors have the ability and the resources to detect earnings overstatement, which they would adjust for before pricing the securities of the firms (Collins et al., 2003).”
The Association Between Management Earnings Forecast Errors and Accruals (2009, background): “…3 Prior research on accrual anomaly largely concurs that the accrual-based hedge portfolio returns reflect investors’ inefficient processing of accruals information (e.g., Sloan 1996; Bradshaw et al. 2001; Collins et al. 2003; Fairfield et al. 2003).”
Why is the Accrual Anomaly not Arbitraged Away? The Role of Idiosyncratic Risk and Transaction Costs (2006, background): “appreciate accruals data while another set finds that insiders and institutions are able to profit from accrual mispricing (Beneish and Vargus, 2002; Collins et al., 2003 ).”