This paper investigates whether stock prices reflect information about future earnings contained
in the accrual and cash flow components of current earnings. The extent to which current …

This paper investigates the hypothesis that CEOs in their final years of office manage
discretionary investment expenditures to improve short-term earnings performance. We examine …

This paper extends the work of Sloan (1996. The Accounting Review 71, 289) by linking
accrual reliability to earnings persistence. We construct a model showing that less reliable …

This paper evaluates alternative accrual-based models for detecting earnings management.
The evaluation compares the specification and power of commonly used test statistics …

Our examination of the cross‐section of expected returns reveals economically and statistically
significant compensation (about 6 to 9 percent per annum) for beta risk when betas are …

What causes managers to misstate their financial statements? How best can investors, auditors,
financial analysts, and regulators detect misstatements? Addressing these questions is …

Prior research shows that the cash component of earnings is more persistent than the accrual
component. We decompose the cash component into: (1) the change in the cash balance, (…

This study investigates firms subject to accounting enforcement actions by the Securities and
Exchange Commission for alleged violations of Generally Accepted Accounting Principles. …

We provide new evidence that the inferior returns to growth stocks relative to value stocks
are the result of expectational errors about future earnings performance. Our evidence …

Using confidential data of executive-specific short-term bonus plans, we investigate the
extent to which executives manipulate earnings to maximize the present value of bonus plan …