Classification and market pricing of the cash flows and accruals on trading positions

• 成果类型: Article
• 署名作者: Ryan, SG; Tucker, JW; Zarowin, PA
• 署名单位: New York University; State University System of Florida; University of Florida
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr.2006.81.2.443
• 发表日期: 2006
• 页码: 443-472
• 关键词: incremental information-content; at-risk disclosures; earnings; components; valuation; banks

摘要

Despite the classification of the cash flows on trading positions as operating under SFAS No. 102, trading is economically a hybrid operating/non-operating activity. Reflecting this hybrid nature, we hypothesize and find that the change in net trading assets has a less positive association with returns and future CFO than do the pure operating components of cash flows and accruals, and it has a more positive association with returns and future CFO than do the pure non-operating components of cash flows. Our paper is the first to propose and test hypotheses about the valuation implications of such hybrid cash flows and accruals.