TY - JOUR
T1 - An integrated analysis of the association between accrual disclosure and the abnormal accrual anomaly
AU - Louis, Henock
AU - Robinson, Dahlia
AU - Sbaraglia, Andrew
N1 - Funding Information:
Acknowledgments This paper benefits from comments by two anonymous referees, Steven Huddart, Andrew Leone, James McKeown, Richard Sloan (editor), Amy Sun, Hal White, Tzachi Zach (discussant at the 2005 American Accounting Association annual conference), and workshop participants at Penn State University and the University of Illinois. Funding for this research has been provided by the Smeal Small Research Grant Program at Penn State University and the Arizona State W.P. Carey Summer Research Grant Program.
PY - 2008/3
Y1 - 2008/3
N2 - 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.
AB - 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.
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U2 - 10.1007/s11142-007-9038-z
DO - 10.1007/s11142-007-9038-z
M3 - Article
AN - SCOPUS:37849024554
SN - 1380-6653
VL - 13
SP - 23
EP - 54
JO - Review of Accounting Studies
JF - Review of Accounting Studies
IS - 1
ER -