review the literature of conservatism in financial reporting indicates the importance of conservatism in accounting profession. researchers have always tried to determine the degree and ways of conservatism in financial reporting and accounting, although this is not done easily, because there is not a direct measure of conservatism. however, conservatism has been one of the key principles in ac...

The current study aims to investigate the relationship between stock liquidity risk and financial information quality criteria (i.e. the timely dividends announcement, accruals quality and the percentage of profitability prediction error) of companies listed on the Tehran Stock Exchange. For this purpose, 148 cases of data from listed companies, collected from 2007 to 2012, were employed in ord...

Objective: The main objective of this research is to explain the accrual anomaly using accruals factor (CMA) and accrual-based factor-mimicking portfolios as well as checking whether accrual anomaly is risk-based or mispricing. According to rational frictionless asset pricing model, the ability of accruals to predict returns should come from the loadings on this accrual factor loading that pred...

We investigate whether the accruals anomaly (Sloan 1996), characterized by U.S. stock prices over-weighting the role of accrual persistence and under-weighting the role of operating cash flow persistence for future earnings, is a local manifestation of a global phenomenon. Hence, we examine whether stock prices in six other major capital markets and Japan) fully reflect the implications of the ...

Commonly used Jones-type discretionary accrual models applied in quarterly settings do not adequately control for nondiscretionary accruals that naturally occur due to firm growth. We show that the relation between quarterly accruals and backward-looking sales growth (measured over a rolling four-quarter window) and forward-looking firm growth (market-to-book ratio) is non-linear. Failure to co...

Taking as given the discretionary accruals models that exist in the literature, we examine how the selection of peer firms affects the researcher’s ability to detect earnings management. Researchers commonly estimate accruals models in cross section, and define the peer set (the firms used to estimate the cross section) as all firms in the same industry. We challenge this view by examining whet...

This paper investigates wage assimilation of foreign-born male workers in Britain over the period 1993 to 2009. Using Labour Force Survey data, the paper employs a methodology (Blinder-Oaxaca quantile regressions) to decompose the immigrant-native wage differential at the mean and across the conditional wage distribution. Although immigrants earn more on average than natives, mean results mask ...