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

• Main Authors: Cao, Viet Nga, Chaub, Frankie, Paudyal, Krishna
• Other Authors: Hội thảo quốc tế Ngân hàng và Tài chính thế giới 2015
• Format: Conference or Workshop Item
• Language: English
• Published: Trường Đại học Kinh tế 2020
• Subjects: Accrual decomposition; Earnings management; Financial constraint; Q-theory
• Online Access: http://repository.vnu.edu.vn/handle/VNU_123/97704
• Institution: 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...