The accrual anomaly: Australian evidence

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dc.contributor.author Clinch, GJ
dc.contributor.author Fuller, D
dc.contributor.author Govendir, B
dc.contributor.author Wells, PA
dc.date.accessioned 2012-10-12T03:35:01Z
dc.date.issued 2012-01
dc.identifier.citation Accounting & Finance, 2012, 52 (2), pp. 377 - 394
dc.identifier.issn 0810-5391
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.
dc.publisher Blackwell Publishing Ltd
dc.relation.isbasedon 10.1111/j.1467-629X.2010.00380.x
dc.title The accrual anomaly: Australian evidence
dc.type Journal Article
dc.parent Accounting & Finance
dc.journal.volume 2
dc.journal.volume 52
dc.journal.number 2 en_US
dc.publocation Oxford, UK en_US
dc.publocation London
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 Financial Accounting
dc.personcode 920016
dc.personcode 995057
dc.personcode 106483
dc.personcode 999178
dc.percentage 100 en_US
dc.classification.name Financial Accounting en_US
dc.classification.type FOR-08 en_US
dc.edition en_US
dc.edition Second
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.description.keywords EARNINGS PERSISTENCE
dc.description.keywords ACCOUNTING LOSSES
dc.description.keywords ABNORMAL ACCRUALS
dc.description.keywords STOCK RETURNS
dc.description.keywords CASH FLOWS
dc.description.keywords CONSERVATISM
dc.description.keywords INFORMATION
dc.description.keywords QUALITY
dc.description.keywords PRICES
dc.description.keywords Financial reporting
dc.description.keywords Accrual anomaly
dc.description.keywords M41
dc.description.keywords G11
pubs.embargo.period Not known
pubs.organisational-group /University of Technology Sydney
pubs.organisational-group /University of Technology Sydney/Faculty of Business
pubs.organisational-group /University of Technology Sydney/Faculty of Business/School of Accounting
utslib.copyright.status Closed Access
utslib.copyright.date 2015-04-15 12:17:09.805752+10
utslib.collection.history Closed (ID: 3)


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