How do investors estimate persistence of accruals?
نویسندگان
چکیده
Stock prices reflect persistence differences across a wide range of accrual types that are categorized in Richardson, Sloan, Soliman, and Tuna (Journal of Accounting and Economics, 2005). Moreover, stock prices reflect short-term persistence differences more strongly than longterm persistence differences. These findings suggest that investors understand persistence of accrual types during the year accruals are recorded, and the accrual anomaly occurs partly due to investors’ short horizon.
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