The Accrual Anomaly
Patricia M. Dechow
University of California, Berkeley - Haas School of Business
Natalya V. Khimich
University of California, Berkeley
Richard G. Sloan
University of California at Berkeley - Haas School of Business
March 22, 2011
This paper provides a practitioner-oriented review of the accrual anomaly in Sloan (1996) and related subsequent research. We begin with two simple examples that illustrate the computation and interpretation of accruals. We next review Sloan's (1996) original paper and related subsequent research corroborating Sloan's interpretation of the accrual anomaly. We next summarize research providing alternative explanations for the accrual anomaly. We finish with a brief discussion of the practical implications of this research.
Number of Pages in PDF File: 36
Keywords: Accrual, Anomaly, Earnings, Stock Prices
JEL Classification: G12, G14, M41working papers series
Date posted: March 28, 2011
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo6 in 0.375 seconds