The persistence of earnings and cash flows and the role of special items: Implications for the accrual anomaly

By Patricia M. Dechow, Weili Ge. 2006

375 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/df814351628924d04911bd1c7bad084c35267084

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Citations in the corpus

The pricing of conservative accounting and the measurement of conservatism at the firm-year level (2010, background): “16 Dechow and Ge (2005) find that low accrual firms with large negative special items consistently earn”
Limited Investor Attention and Stock Market Misreactions to Accounting Information (2011, neutral): “(16) This is plausible; accruals and cash flows are components of earnings, and empirical studies have documented that earnings is positively correlated with accruals and cash flows (e.g.,Dechow and Ge 2006; Pincus, Rajgopal, and Venkatachalam 2007).”
Determinants of Weaknesses in Internal Control over Financial Reporting (2007, neutral): “are negatively associated with performance (DeFond and Jiambalvo, 1991) and that the existence of a loss is positively associated with reporting an internal control problem in audit-change firms (Krishnan, 2005). We expect to find fewer internal control weaknesses in firms with stronger financial he”
A Review of the Value Relevance Literature (2009, background): “not exhaustive, these explanations include: low earnings persistence [21, 46], a lack of timeliness of earnings due to strict requirements regarding objectivity and verifiability of accounting numbers [28], conservative accounting [44, 47], misspecification of statistical models [20, 35, 48-50], ina”
Do Firms Manage Fair Value Estimates? An Examination of SFAS 142 Goodwill Impairments (2009, positive): “This finding is consistent with Dechow and Ge (2006), and it also emphasizes the need to control for firm performance when testing hypotheses H1–H3.”
Comparing the Value Relevance, Predictive Value, and Persistence of Other Comprehensive Income and Special Items (2011, background): “…Value Studies have shown that different components of earnings have different predictive value (Finger 1994; Sloan 1996; Fairfield et al. 1996; Dechow and Ge 2006), and that disaggregating earnings into components enhances the prediction of future performance (Fairfield et al. 1996; Barth et…”
The Market Reward for Achieving Analyst Earnings Expectations: Does Managing Expectations or Earnings Matter? (2011, methodology): “…BTM, PERSIST, RISK, SIZE, ZSCORE, and LTA controls for other risk and pricing effects (Xie 2001, Fama and French 2008, Campbell et al. 2008, Dechow and Ge 2006).22 The regression also includes factors that affect the choice to engage in earnings guidance or classification shifting, i.e.…”