An integrated analysis of the association between accrual disclosure and the abnormal accrual anomaly

Henock Louis, Dahlia Robinson, Andrew Sbaraglia

Research output: Contribution to journalArticlepeer-review

45 Scopus citations

Abstract

We find no evidence of accrual mispricing for firms that disclose accrual information at earnings announcements. For these firms, the market differentiates the discretionary from the nondiscretionary components of the earnings surprise. In contrast, the market fails to distinguish between the discretionary and the nondiscretionary components of the earnings surprise for firms that do not disclose accrual information at earnings announcements. These firms experience some stock price correction around the filing date. However, the correction is only partial, resulting in a post-filing drift.

Original languageEnglish (US)
Pages (from-to)23-54
Number of pages32
JournalReview of Accounting Studies
Volume13
Issue number1
DOIs
StatePublished - Mar 2008

All Science Journal Classification (ASJC) codes

  • Accounting
  • Business, Management and Accounting(all)

Fingerprint Dive into the research topics of 'An integrated analysis of the association between accrual disclosure and the abnormal accrual anomaly'. Together they form a unique fingerprint.

Cite this