Do Investors Overvalue Firms With Bloated Balance Sheets

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Persuasion: Empirical Evidence (2010, neutral): “Hirshleifer et al. (2004) show that firms with a high value for net operating assets, a proxy for accounting management, experience in later quarters worse earnings news, as well as substantially lower stock returns.”
Limited attention and the earnings announcement returns of past stock market winners (2010, neutral): “Keywords Earnings announcement Anomaly Limited attention Returns JEL classification M41 G14”
The short of it (2012, neutral): “Hirshleifer, Hou, Teoh, and Zhang (2004) ﬁnd that net operating assets scaled by total assets is a strong negative predictor of long-run stock returns.”
Earnings Manipulation and Expected Returns (2013, background): “Prior research has shown that a number of characteristics are correlated with subsequent returns: (1) the difference between earnings and cash flows from operations (accruals), following Sloan (1996); (2) price momentum (momentum), following evidence in Jegadeesh and Titman (1993) that past 3- to 12”
A Financing-Based Misvaluation Factor and the Cross Section of Expected Returns (2010, background): “In the model of Daniel, Hirshleifer, and Subrahmanyam (2001), a set of identical risk-averse individuals are each endowed with shares of N + K risky securities and a risk-free consumption claim with terminal (date 2) payoff of 1.”