Accruals and Future Stock Returns: Tests of the Naïve Investor Hypothesis

By Ashiq Ali, Lee-Seok Hwang, Mark A. Trombley. 2000

121 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/ef49b1808baeb94d709327d296cd06f1edcbe54c

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Citations in the corpus

Value-Glamour and Accruals Mispricing: One Anomaly or Two? (2004, background): “, Ali et al. 2001; Barth and Hutton 2001; Beneish and Vargus 2001; Bradshaw et al. 2001; Richardson 2001). Others have investigated whether the accruals anomaly is: (i) caused by management manipulation (e.g., Xie 2001; Chan et al. 2001); (ii) distinct from the post-earnings announcement drift (Coll”
Beating Earnings Benchmarks and the Cost of Debt (2008, background): “For example, Ali et al. (2000) find that high institutional ownership exacerbates rather than mitigates the mispricing of accruals.”
Investor Psychology in Capital Markets: Evidence and Policy Implications (2001, unknown): “The accruals/return relation does not seem to depend on the extent of analyst following or of institutional ownership (Ali, Hwang, and Trombley (2000)).”
The value relevance of environmental performance (2005, methodology): “, 2000; Ali and Hwang, 2000), we define value relevance as the ability of accounting or non-accounting measures to capture or summarize information that affects equity value. The model expresses the market value of equity as a function of a firm’s book value, earnings, and other value-relevant non-f”
Agency Theory of Overvalued Equity as an Explanation for the Accrual Anomaly (2006, unknown): “Ali et al. (2000) find the negative association between accruals and future returns is more pronounced for firms with extensive analysts’ coverage and greater institutional ownership.”
Investor Sophistication and the Mispricing of Accruals (2003, methodology): “In a study most closely related to the present study, Ali et al. (2000) investigate whether the association between accruals and future returns documented in Sloan (1996) is due to fixation by naı̈ve (i.e., individual) investors. Contrary to predictions of the naı̈ve investor hypothesis, they find t”