The accrual anomaly: Australian evidence

UTSePress Research/Manakin Repository

Search UTSePress Research


Advanced Search

Browse

My Account

Show simple item record

dc.contributor.author Clinch, Gregory en_US
dc.contributor.author Fuller, Damian en_US
dc.contributor.author Govendir, Brett en_US
dc.contributor.author Wells, Peter en_US
dc.contributor.editor en_US
dc.date.accessioned 2012-10-12T03:35:01Z
dc.date.available 2012-10-12T03:35:01Z
dc.date.issued 2012 en_US
dc.identifier 2011004644 en_US
dc.identifier.citation Clinch Gregory et al. 2012, 'The accrual anomaly: Australian evidence', Blackwell Publishing Ltd, vol. 52, no. 2, pp. 377-394. en_US
dc.identifier.issn 0810-5391 en_US
dc.identifier.other C1 en_US
dc.identifier.uri http://hdl.handle.net/10453/18847
dc.description.abstract This paper investigates whether there is evidence of the accrual anomaly (Sloan, 1996) in Australia, whereby investors overestimate the impact of accruals on the persistence of earnings. While our results provide general support for the existence of the anomaly in Australia, there are a number of idiosyncrasies. First, there is evidence of Australian investors underestimating the persistence of earnings. Second, there is evidence of investors incorrectly assessing the implications of accruals and cash flows for the persistence of earnings (i.e. an accrual anomaly and a cash-flow anomaly). Third, returns to a hedged portfolio trading strategy based on reported accruals are decreasing over the three-year period subsequent to portfolio formation. Furthermore, they are statistically significant only in the first year. Additional analysis of the hedge portfolio results indicates that these results are primarily attributable to a limited number of firm-year observations in the extreme positive tail of returns. en_US
dc.language en_US
dc.publisher Blackwell Publishing Ltd en_US
dc.relation.isbasedon http://dx.doi.org/10.1111/j.1467-629X.2010.00380.x en_US
dc.title The accrual anomaly: Australian evidence en_US
dc.parent Accounting & Finance en_US
dc.journal.volume 52 en_US
dc.journal.number 2 en_US
dc.publocation Oxford, UK en_US
dc.identifier.startpage 377 en_US
dc.identifier.endpage 394 en_US
dc.cauo.name BUS.School of Accounting en_US
dc.conference Verified OK en_US
dc.for 150103 en_US
dc.personcode 995057 en_US
dc.personcode 999178 en_US
dc.personcode 106483 en_US
dc.personcode 920016 en_US
dc.percentage 100 en_US
dc.classification.name Financial Accounting en_US
dc.classification.type FOR-08 en_US
dc.edition en_US
dc.custom en_US
dc.date.activity en_US
dc.location.activity en_US
dc.description.keywords EARNINGS PERSISTENCE; ACCOUNTING LOSSES; ABNORMAL ACCRUALS; STOCK RETURNS; CASH FLOWS; CONSERVATISM; INFORMATION; QUALITY; PRICES; Financial reporting; Accrual anomaly; M41; G11 en_US
dc.staffid 920016 en_US


Files in this item

This item appears in the following Collection(s)

Show simple item record