Voluntary disclosure of accruals in earnings press releases and the pricing of accruals

• 成果类型: Article
• 署名作者: Levi, Shai
• 署名单位: University of California System; University of California Berkeley
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-007-9059-7
• 发表日期: 2008
• 页码: 1-21
• 关键词: INVESTOR SOPHISTICATION; INFORMATION; valuation; prediction; returns

摘要

This study investigates firms' decisions to disclose accruals information in earnings press releases versus to provide it only in 10-Q filings and the impact of this disclosure on the pricing of accruals. I find that firms disclose accruals in their press releases when earnings alone are a weak indication of cash flow performance and that following these disclosures the accruals information is fully impounded into stock prices. The evidence suggests that when investor demand for accruals is likely to exist and firms disclose the information in earnings press releases, the mispricing typically associated with accruals is mitigated.