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Over-investment of free cash flow
This paper examines the extent of firm level over-investment of free cash flow. Using an accounting-based framework to measure over-investment and free cash flow, I find evidence that, consistentExpand
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Accrual Reliability, Earnings Persistence and Stock Prices
This paper extends the work of Sloan (1996) by linking accrual reliability to earnings persistence. We construct a model showing that less reliable accruals lead to lower earnings persistence. WeExpand
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Why Are Earnings Kinky? An Examination of the Earnings Management Explanation
Prior research has documented a “kink” in the earnings distribution: too few firms report small losses, too many firms report small profits. We investigate whether boosting of discretionary accrualsExpand
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The Walk-down to Beatable Analyst Forecasts: The Role of Equity Issuance and Insider Trading Incentives*
Security regulators and the business press have alleged that firms play an 'earnings-guidance game' where analysts make optimistic forecasts at the start of the year and then 'walk down' theirExpand
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The relation between corporate financing activities, analysts’ forecasts and stock returns
We develop a comprehensive and parsimonious measure of corporate financing activities and document a negative relation between this measure and both future stock returns and future profitability. TheExpand
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Fees Paid to Audit Firms, Accrual Choices, and Corporate Governance
We examine the relation between the fees paid to auditors for audit and non‐audit services, and the choice of accrual measures for a large sample of firms. Using our pooled sample, we find that theExpand
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Do Analysts and Auditors Use Information in Accruals
type="main" xml:lang="en"> Existing research indicates that firms with high accruals are more likely to experience future earnings problems, but that investors' expectations, as reflected in stockExpand
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Predicting Earnings Management: The Case of Earnings Restatements
This paper examines the usefulness of accounting information in predicting earnings management. We investigate a comprehensive sample of firms from 1971-2000 that restated annual earnings. We findExpand
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Accounting Anomalies and Fundamental Analysis: A Review of Recent Research Advances
We survey recent research in accounting anomalies and fundamental analysis. We use forecasting of future earnings and returns as our organizing framework and suggest a roadmap for research aiming toExpand
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Earnings Quality and Short Sellers
A key measure of earnings quality is the deviation of net income from operating cash flows. Sloan (1996) finds that firms with high accruals (or a large gap between net income and operating cashExpand
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