Earnings Quality and Short Sellers

By Scott A. Richardson. 2003

157 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/fab94bcd14f15362880636d2b22b3ad29241512c

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Citations in the corpus

Do Short Sellers Target Firms with Poor Earnings Quality? Evidence from Earnings Restatements (2006, unknown): “Richardson et al. (2004) show that investing accruals, such as non-current operating asset accruals, have low persistence and low reliability.”
Short interest and stock price crash risk (2015, background): “7 Using a sample of U.S. traded firms for the period of 1990–1998, Richardson (2003) fails to document evidence that short sellers trade on the information contained in accruals.”
Short Sellers and Financial Misconduct (2010, background): “Richardson (2003) fails to find evidence that short sellers target firms with high accruals.”
Earnings attributes and investor-protection: International evidence (2006, background): “…quality to draw conclusions about earnings quality and view earnings to be of higher quality if accruals quality is high.6 Dechow and Dichev (2002), Beneish and Vargus (2002), Penman and Zhang (2002), and Richardson (2003) view earnings to be of higher quality when earnings is more persistent.”
Why is the Accrual Anomaly not Arbitraged Away? The Role of Idiosyncratic Risk and Transaction Costs (2006, unknown): “Subsequent research has argued that sophisticated information intermediaries such as auditors, stock analysts, and even short-sellers do not fully appreciate the information in accruals for future earnings (Bradshaw et al., 2001; Barth and Hutton, 2004; Teoh and Wong, 2001; Richardson, 2003).”
Costly short -selling and stock price adjustment to earnings announcements (2002, methodology): “Furthermore, Evans, Geczy, Musto and Reed (2006) and Ofek, Richardson and Whitelaw (2004) show that borrowing costs are transferred to options prices, so the existence of options may not imply a slackening of short sale constraints.”
Short Selling and the Price Discovery Process (2013, background): “As Richardson (2003) points out, higher data frequency is important in identifying the impact of short selling on firm fundamentals.”