Accruals and future performance: Can it be attributed to risk?

• 成果类型: Article
• 署名作者: Momente', Francesco; Reggiani, Francesco; Richardson, Scott
• 署名单位: Bocconi University; University of London; London Business School
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-015-9319-x
• 发表日期: 2015
• 页码: 1297-1333
• 关键词: earnings; returns; profitability; INFORMATION; analysts; GROWTH

摘要

We decompose broad-based measures of accruals into firm-specific and related-firm components. We find that the negative relation between accruals and future firm performance is almost entirely attributable to the firm-specific component. Standard risk-based explanations are hard to reconcile with this fact. To the extent expected returns have a common component spanning related firms, a risk-based explanation would suggest a stronger negative relation between accruals and future firm performance when related firms are also growing. Instead, the attenuation we document is more likely attributable to suboptimal investment decisions, which the stock market and analysts do not incorporate in a timely manner.