Comparing abnormal accruals models: a non-parametric approach

Abstract

The purpose of this study is to compare the distribution of discretionary accruals produced by the Standard and Modified Jones models using a non-parametric approach. Evidence is provided that discretionary accruals produced by the two models have an almost identical distribution. Moreover, it is found that whether or not an intercept is included in the model produces more intra-distribution mobility than the use of the standard or the modified version of the model.