The Accrual Anomaly in the U.K. Stock Market: Implications of Growth and Accounting Distortions

Détails

ID Serval
serval:BIB_51B6D61C19E5
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Institution
Titre
The Accrual Anomaly in the U.K. Stock Market: Implications of Growth and Accounting Distortions
Périodique
Journal of International Financial Markets, Institutions and Money
Auteur(s)
Doukakis  L. C., Papanastasopoulos  G.
ISSN
1042-4431
Statut éditorial
Publié
Date de publication
09/2014
Peer-reviewed
Oui
Volume
32
Pages
256-277
Langue
anglais
Résumé
On the basis of an accrual decomposition into two components capturing output growth and accounting distortions, this paper analyzes the effects of accounting accruals on firms' future performance in the U.K. stock market. Findings reveal a strong negative association of accruals with future profitability and stock returns. The effect of accruals on future earnings performance is driven only by the component attributable to accounting distortions, and the accrual effect on stock price performance is driven by both the component attributable to accounting distortions and the component attributable to growth. These two components complement each other in driving the accrual effect on stock returns.
Mots-clé
Accruals, growth, accounting distortions, profitability, stock returns
Web of science
Création de la notice
06/07/2014 14:06
Dernière modification de la notice
21/08/2019 6:16
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