Accruals Quality, Shocks to Macro-uncertainty, and Investor Response to Earnings News

References

• Ahmed, A. S., McMartin, A. S., & Safdar, I. (2020). Earnings volatility, ambiguity, and crisis-period stock returns. Accounting & Finance, 60(3), 2939–2963. doi:10.1111/acfi.12420
   Web of Science ®Google Scholar
• Andrade, S. C., Bernile, G., & Hood, F. M. (2014). SOX, corporate transparency, and the cost of debt. Journal of Banking & Finance, 38, 145–165. doi:10.1016/j.jbankfin.2013.10.001
   Web of Science ®Google Scholar
• Balakrishnan, K., Watts, R. L., & Zuo, L. (2016). The effect of accounting conservatism on corporate investment during the global financial crisis. Journal of Business Finance & Accounting, 43(5–6), 513–542. doi:10.1111/jbfa.12206
   Web of Science ®Google Scholar
• Ball, R., & Shivakumar, L. (2006). The role of accruals in asymmetrically timely gain and loss recognition. Journal of Accounting Research, 44(2), 207–242. doi:10.1111/j.1475-679X.2006.00198.x
   Web of Science ®Google Scholar
• Bloom, N. (2009). The impact of uncertainty shocks. Econometrica, 77(3), 623–685. doi: 10.3982/ECTA6248
   Web of Science ®Google Scholar
• Cao, H. H., Wang, T., & Zhang, H. H. (2005). Model uncertainty, limited market participation, and asset prices. Review of Financial Studies, 18(4), 1219–1251. doi:10.1093/rfs/hhi034
   Web of Science ®Google Scholar
• Caskey, J. A. (2009). Information in equity markets with ambiguity-averse investors. Review of Financial Studies, 22(9), 3595–3627. doi:10.1093/rfs/hhn062
   Web of Science ®Google Scholar
• Cohen, D. A., Dey, A., & Lys, T. Z. (2008). Real and accrual-based earnings management in the Pre- and post-Sarbanes-Oxley periods. The Accounting Review, 83(3), 757–787. doi:10.2308/accr.2008.83.3.757
   Web of Science ®Google Scholar
• Core, J. E., Guay, W. R., & Verdi, R. S. (2008). Is accruals quality a priced risk factor? Journal of Accounting and Economics, 46(1), 2–22. doi:10.1016/j.jacceco.2007.08.001
   Web of Science ®Google Scholar
• Dechow, P. M., & Dichev, I. D. (2002). The quality of accruals and earnings: The role of accrual estimation errors. The Accounting Review, 77(s–1), 35–59. doi:10.2308/accr.2002.77.s-1.35
   Web of Science ®Google Scholar
• Dechow, P. M., Sloan, R. G., & Sweeney, A. (1995). Detecting earnings management. Accounting Review, 70(2),193–225. https://www.jstor.org/stable/248303
   Web of Science ®Google Scholar
• Ecker, F., Francis, J., Kim, I., Olsson, P. M., & Schipper, K. (2006). A returns-based representation of earnings quality. The Accounting Review, 81(4), 749–780. doi:10.2308/accr.2006.81.4.749
   Web of Science ®Google Scholar
• Ellsberg, D. (1961). Risk, ambiguity, and the savage axioms. The Quarterly Journal of Economics, 75(4), 643–689. doi:10.2307/1884324
   Web of Science ®Google Scholar
• Epstein, L. G., & Miao, J. (2003). A two-person dynamic equilibrium under ambiguity. Journal of Economic Dynamics and Control, 27(7), 1253–1288. doi:10.1016/S0165-1889(02)00059-3
   Web of Science ®Google Scholar
• Epstein, L. G., & Schneider, M. (2003). Recursive multiple-priors. Journal of Economic Theory, 113(1), 1–31. doi:10.1016/S0022-0531(03)00097-8
   Web of Science ®Google Scholar
• Epstein, L. G., & Schneider, M. (2007). Learning under ambiguity. Review of Economic Studies, 74(4), 1275–1303. doi:10.1111/j.1467-937X.2007.00464.x
   Web of Science ®Google Scholar
• Epstein, L. G., & Schneider, M. (2008). Ambiguity, information quality, and asset pricing. The Journal of Finance, 63(1), 197–228. doi:10.1111/j.1540-6261.2008.01314.x
   Web of Science ®Google Scholar
• Ertimur, Y., Livnat, J., & Martikainen, M. (2003). Differential market reactions to revenue and expense surprises. Review of Accounting Studies, 8(2/3), 185–211. doi:10.1023/A:1024409311267
   Web of Science ®Google Scholar
• Fama, E. F., & French, K. R. (1997). Industry costs of equity. Journal of Financial Economics, 43(2), 153–193. doi:10.1016/S0304-405X(96)00896-3
   Web of Science ®Google Scholar
• Francis, B., Hasan, I., & Wu, Q. (2013). The benefits of conservative accounting to shareholders: Evidence from the financial crisis. Accounting Horizons, 27(2), 319–346. doi:10.2308/acch-50431
   Web of Science ®Google Scholar
• Francis, J., Lafond, R., Olsson, P., & Schipper, K. (2007). Information uncertainty and post-earnings-announcement-drift. Journal of Business Finance & Accounting, 34(3–4), 403–433. doi:10.1111/j.1468-5957.2007.02030.x
   Web of Science ®Google Scholar
• Francis, J., LaFond, R., Olsson, P. M., & Schipper, K. (2005). The market pricing of accruals quality. Journal of Accounting and Economics, 39(2), 295–327. doi:10.1016/j.jacceco.2004.06.003
   Web of Science ®Google Scholar
• Gilboa, I., & Schmeidler, D. (1989). Maxmin expected utility with non-unique prior. Journal of Mathematical Economics, 18(2), 141–153. doi:10.1016/0304-4068(89)90018-9
   Web of Science ®Google Scholar
• Graham, J. R., Harvey, C. R., & Rajgopal, S. (2005). The economic implications of corporate financial reporting. Journal of Accounting and Economics, 40(1–3), 3–73. doi:10.1016/j.jacceco.2005.01.002
   Web of Science ®Google Scholar
• Hasan, R., Kumas, A., & Van der Laan Smith, J. (2018). Market ambiguity and individual investor information demand. Journal of Contemporary Accounting & Economics, 14(1), 126–141.
   Web of Science ®Google Scholar
• Healy, P. M., Hutton, A. P., & Palepu, K. G. (1999). Stock performance and intermediation changes surrounding sustained increases in disclosure. Contemporary Accounting Research, 16(3), 485–520. doi:10.1111/j.1911-3846.1999.tb00592.x
   Google Scholar
• Hodge, F., Hopkins, P. E., & Pratt, J. (2006). Management reporting incentives and classification credibility: The effects of reporting discretion and reputation. Accounting, Organizations and Society, 31(7), 623–634. doi:10.1016/j.aos.2005.12.003.
   Web of Science ®Google Scholar
• Holthausen, R. W., & Verrecchia, R. E. (1988). The effect of sequential information releases on the variance of price changes in an intertemporal multi-asset market. Journal of Accounting Research, 26(1), 82. doi:10.2307/2491114
   Web of Science ®Google Scholar
• Hou, Y. (2015). The role of diversification in the pricing of accruals quality. Review of Accounting Studies, 20(3),1059–1092. doi:10.1007/s11142-015-9331-1
   Web of Science ®Google Scholar
• Imhoff, E. A., & Lobo, G. J. (1992). The effect of ex-ante earnings uncertainty on earnings response coefficients. Accounting Review, 67(2), 427–439. https://www.jstor.org/stable/247734
   Web of Science ®Google Scholar
• Jones, J. J. (1991). Earnings management during import relief investigations. Journal of Accounting Research, 29(2), 193–228. doi:10.2307/2491047
   Web of Science ®Google Scholar
• Kalelkar, R., & Nwaeze, E. T. (2011). Sarbanes–Oxley Act and the quality of earnings and accruals: Market-based evidence. Journal of Accounting and Public Policy, 30(3), 275–294. doi:10.1016/j.jaccpubpol.2011.02.004
   Web of Science ®Google Scholar
• Kim, O., & Verrecchia, R. E. (1991). Trading volume and price reactions to public announcements. Journal of Accounting Research, 29(2), 302–321. doi:10.2307/2491051
   Web of Science ®Google Scholar
• Knight, F. (1921). Risk, uncertainty and profit. Houghton Mifflin. doi:10.1017/CBO9781107415324.004
   Google Scholar
• Kothari, S. P., Leone, A. J., & Wasley, C. E. (2005). Performance matched discretionary accrual measures. Journal of Accounting and Economics, 39(1), 163–197. doi:10.1016/j.jacceco.2004.11.002
   Web of Science ®Google Scholar
• Lang, M. H., & Lundholm, R. (1993). Cross-sectional determinants of analyst ratings of corporate disclosures. Journal of Accounting Research, 31(2), 246–271. doi:10.2307/2491273
   Web of Science ®Google Scholar
• Lang, M. H., & Lundholm, R. (1996). Corporate disclosure policy and analyst behavior. Accounting Review, 71(4), 467–492. https://www.jstor.org/stable/248567
   Web of Science ®Google Scholar
• Lang, M. H., & Maffett, M. (2011). Transparency and liquidity uncertainty in crisis periods. Journal of Accounting and Economics, 52(2–3), 101–125. doi:10.1016/j.jacceco.2011.07.001
   Web of Science ®Google Scholar
• Lipe, R. (1990). The relation between stock returns and accounting earnings given alternative information. Accounting Review, 65(1), 49–71. https://www.jstor.org/stable/247876
   Web of Science ®Google Scholar
• Liu, H. H., & Colman, A. M. (2009). Ambiguity aversion in the long run: Repeated decisions under risk and uncertainty. Journal of Economic Psychology, 30(3), 277–284. doi:10.1016/j.joep.2009.02.001
   Web of Science ®Google Scholar
• McNichols, M. F. (2002). Discussion of the quality of accruals and earnings: The role of accrual estimation errors. The Accounting Review, 77(s–1), 61–69. doi:10.2308/accr.2002.77.s-1.61
   Web of Science ®Google Scholar
• Owens, E. L., Wu, J. S., & Zimmerman, J. (2017). Idiosyncratic shocks to firm underlying economics and abnormal accruals. The Accounting Review, 92(2), 183–219. doi:10.2308/accr-51523
   Web of Science ®Google Scholar
• Rees, L., & Sivaramakrishnan, K. (2007). The effect of meeting or beating revenue forecasts on the association between quarterly returns and earnings forecast errors. Contemporary Accounting Research, 24(1), 259–290. doi:10.1506/G767-1674-5686-5375
   Web of Science ®Google Scholar
• Welker, M. (1995). Disclosure policy, information asymmetry, and liquidity in equity markets. Contemporary Accounting Research, 11(2), 801–827. doi:10.1111/j.1911-3846.1995.tb00467.x
   Google Scholar
• Williams, C. D. (2015). Asymmetric responses to earnings news: A case for ambiguity. The Accounting Review, 90(2), 785–817. doi:10.2308/accr-50866
   Web of Science ®Google Scholar