Do Analysts and Auditors Use Information in Accruals

By Mark Bradshaw, Scott A. Richardson, Richard G. Sloan. 2001

695 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/cf1650159fa6b5a898f156211581074ab18d232e

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Citations in the corpus

Earnings, Cash Flows, and Ex Post Intrinsic Value of Equity (2007, background): “Using ex ante expectations such as analyst forecasts to determine intrinsic value may not be appropriate because analysts also appear to fixate on current earnings (Bradshaw et al. 2001).”
Why is the Accrual Anomaly not Arbitraged Away? The Role of Idiosyncratic Risk and Transaction Costs (2006, background): “One set of papers argues that analysts, auditors, institutions, short-sellers and bond-market investors (Ali et al., 2001; Barth and Hutton, 2004; Bradshaw et al., 2001; Bhojraj and Swaminathan, 2004) do not fully 1In a recent paper, Bushee and Raedy (2005) show that several trading strategies,…”
Accruals, Investment, and the Accrual Anomaly (2007, neutral): “Sloan (1996) and Bradshaw et al. (2001) show that accruals reverse very quickly.”
Adopting a Label: Heterogeneity in the Economic Consequences of IFRS Adoptions * (2007, background): “Sloan (1996), Bradshaw et al. (2001) and Richardson et al. (2002) show that the decomposition of earnings into accruals and operating cash flow as well as extreme accruals contain important information (e.g., with respect to future restatements and SEC enforcement actions).”
Institutional investors, shareholder activism, and earnings management (2011, methodology): “By misleading investors, earnings management could lead to temporary resource misallocation (Bradshaw et al., 2001).”
Analysts’ Forecasts and Asset Pricing: A Survey (2016, neutral): “…are imperfect, understanding the predictive component of analysts’ errors could also yield predictable patterns in stock returns (assuming that the expectation errors will eventually be corrected in the future) (see Elgers et al., 2003; Bradshaw et al., 2001; Frankel and Lee, 1998; and So, 2013).”
Agency Theory of Overvalued Equity as an Explanation for the Accrual Anomaly (2006, neutral): “, difference in the persistence of accruals and cash flows, see Dechow, Richardson, and Sloan (2004), Francis and Smith (2004), Ahmed, Nainar and Zhou (2001), Bradshaw, Richardson and Sloan (2001), Zach (2004) and Chambers (2005). Our study does not pursue any of the above lines of inquiry.”
Are analysts’ earnings forecasts more accurate when accompanied by cash flow forecasts? (2009, background): “8 Elgers et al. (2003) and Bradshaw et al. (2001) find evidence consistent with analysts’ overreaction to”
The Use of Dupont Analysis by Market Participants (2008, neutral): “Bradshaw, Richardson, and Sloan (2001) explore whether equity analysts understand the lower persistence of accruals and find that they, like equity investors, do not fully understand accruals.”