142 Pages Posted: 16 Feb 2011
Date Written: September 15, 2010
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 to document the forecasting benefits of accounting information. We combine this with opinions from the academic and practitioner communities to critically evaluate key clusters of papers about accounting anomalies and fundamental analysis disseminated over the last decade. Finally, we provide a new analysis on how an ex ante and ex post treatment of risk and transaction costs affects the accrual and PEAD anomalies, and offer suggestions for future research.
Keywords: Accruals, Anomalies, Forecasting, Fundamental Analysis, Market
JEL Classification: G12, G14, M41
Suggested Citation: Suggested Citation
Richardson, Scott A. and Wysocki, Peter D. and Tuna, A. Irem, Accounting Anomalies and Fundamental Analysis: A Review of Recent Research Advances (September 15, 2010). Available at SSRN: https://ssrn.com/abstract=1762124 or http://dx.doi.org/10.2139/ssrn.1762124
By Meb Faber