Articulation-based accruals

• 成果类型: Article
• 署名作者: Casey, Ryan; Gao, Feng; Kirschenheiter, Michael; Li, Siyi; Pandit, Shailendra
• 署名单位: University of Denver; Rutgers University System; Rutgers University New Brunswick; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-016-9385-8
• 发表日期: 2017
• 页码: 288-319
• 关键词: earnings; INFORMATION; QUALITY

摘要

We build an articulating financial statements model in which the beginning and ending balance sheet amounts are explicitly linked to accruals. We distinguish accruals based on the source financial statement of the accruals, either the cash flow statement, balance sheet, or statement of owners' equity. We then examine how the accrual-generating source affects the relations between accruals and future earnings and stock returns. While prior studies document a negative association between accruals and future earnings and returns, we find accruals relating to the current operating section of the balance sheet are positively associated with future earnings. Further, accruals originating from net financial asset via the statement of owners' equity are positively associated with future returns. We also show that equity investment and discontinued asset accruals differ from operating asset accruals in their association with future earnings.