The accruals anomaly – can implementable portfolio strategies be developed that are profitable net of transactions costs in the UK?

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• The authors are both at Manchester Business School (Nuno Soares is also at Faculdade de Engenharia, Universidade do Porto, Portugal). This paper has benefited from the comments of the two anonymous reviewers, Pauline Weetman (the editor), participants at the 2006 and 2007 British Accounting Association Conferences, the 2007 European Accounting Association Annual Congress, the 2007 European Financial Management Doctoral Colloquium, the 2008 American Accounting Association Annual Conference, seminar participants at the London School of Economics (November 2007) and Colin Clubb, Asad Kausar, Edward Lee, Peter Pope, Norman Strong and Martin Walker. All remaining errors are those of the authors. Correspondence should be addressed to: Professor Andrew W. Stark, Manchester Business School, Booth Street West, Manchester, M15 6PB, UK. E‐mail: [email protected]. Tel: +44 161 275 6425.
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