What drives the accrual spread? Evidence from a contemporary decomposition approach

• Main Authors: Cao, Viet Nga, Chaub, Frankie, Paudyal, Krishna
• 其他作者: Hội thảo quốc tế Ngân hàng và Tài chính thế giới 2015
• 格式: Conference or Workshop Item
• 語言: English
• 出版: Trường Đại học Kinh tế 2020
• 主題: Accrual decomposition; Earnings management; Financial constraint; Q-theory
• 在線閱讀: http://repository.vnu.edu.vn/handle/VNU_123/97704
• 機構: Vietnam National University, Hanoi

We examine the main drivers of the accrual spread and the profitability of accrual-based trading strategies by disaggregating total accrual into three components: investment in working capital that supports growth, accrual estimation error, and temporary working capital fluctuation. Several findi...