scholarly journals The Existence of Accrual Anomaly Phenomena in Indonesia Capital Market

2020 ◽  
Vol 21 (2) ◽  
Author(s):  
Gerrinko Giffari Wurintara ◽  
Hamidah Hamidah
Keyword(s):  
Capital Market ◽  
Accrual Anomaly

scholarly journals Accrual anomaly in the Brazilian capital market

2012 ◽  
Vol 9 (4) ◽  
pp. 421-440 ◽  
Author(s):  
César Medeiros Cupertino ◽  
Antônio Lopo Martinez ◽  
Newton Carneiro Affonso da Costa Jr.
Keyword(s):  
Capital Market ◽  
Accrual Anomaly

scholarly journals Investor perception of fair value evaluation: focusing on financial instruments

2019 ◽  
Vol 16 (1) ◽  
pp. 203-214
Author(s):  
Minjung Kang ◽  
Young-Tae Yoo
Keyword(s):  
Capital Market ◽  
Predictive Value ◽  
Abnormal Returns ◽  
Fair Value ◽  
Financial Instruments ◽  
Accrual Anomaly ◽  
Predictive Values ◽  
Accounting Performance ◽  
Value Evaluation ◽  
Market Anomaly

This study analyzed capital market investors’ recognition of the predictability of fair value-based valuation. It was examined if market investors overvalue the predictive value of fair value by comparing that value with that measured in accounting performance. The results reveal that investors are likely to overvalue fair value more than predictive values reflected in accounting performance. In particular, the results show that investors can gain abnormal returns through the market anomaly due to the functional fixation that investors cannot distinguish between unrealized profits and realized ones. Though there are considerable studies about accrual anomaly, few studies explore it with the separation of unrealized profits from total accruals. A number of studies about the causes of accrual anomaly have been conducted from various perspectives. The analysis of this study argues that the unrealized profits derived from fair value evaluation can be a cause of accrual anomaly. On the basis of the result, this study suggests that information about unrealized earnings should be reported separately.

scholarly journals Essays in financial accounting and banking

2017 ◽  
Author(s):  
Ανδρέας Τσάλας
Keyword(s):  
Stock Returns ◽  
Capital Market ◽  
Stock Price ◽  
Structural Changes ◽  
Cash Flows ◽  
Common Finding ◽  
Accrual Anomaly ◽  
Managerial Performance ◽  
High Volatility ◽  
Influential Paper

In this thesis I examine two aspects of these issues that have been intensified form the onset of the financial crisis: the Accrual Anomaly in the Greek capital market and Non-Performing Loans (NPLs, hereafter) in the framework of the International Experience. The accrual anomaly was first tested by Sloan in his influential paper (1996). In that paper he present evidence that accruals are less persistent than cash flows and that investors fixate on earnings failing to correctly distinguish between their different properties. My results strongly suggest that low accrual firms did have higher future returns, actually quite higher returns that firms with high accruals, in an environment of extremely high volatility, structural changes in the economy, market crashes and fiscal crises. Total accruals are negatively related to future profitability and stock returns, and the earnings and stock price performance of accrual hedge portfolios provide a meaningful economic summary of this relationship. The findings suggest that growth is mostly responsible for the lower earnings persistence, while accounting distortions are probably not. The results suggest that growth determinants do not behave as substitutes to efficiency determinants in motivating the accrual effect on future stock returns in the Greek capital market. In particular, the findings indicate that the growth component is dominant, as is evidenced by both regressions and hedging portfolios, and, furthermore, it appears that the results are mainly driven by the post 2001 period. The empirical evidence on NPLs implies that both macroeconomic, namely GDP, unemployment and interest rate and bank-specific, i.e. bad management and luck too, skimping, moral haphazard, too big to fail and size effect, factors may influence loan portfolio quality. Additionally, a common finding of related studies is that problem loans evolve counter cyclically in relation to the broader macroeconomic environment. These results should be taken into serious consideration by regulators and policy makers. Bank performance and inefficiency indicators should be thought as crucial determinants of future problem loans. Therefore, regulators trying to determine which banks may face increased problems with future NPLs need to concentrate on managerial performance and procedures so as to prevent future financial vulnerability. The results are consistent with the increased growth of the Greek economy after the introduction of Euro and the subsequent opening up pf the Greek product and labor market, and, mostly, the liberalization of the financial sector. It appears that in times of crisis companies that cannot operate efficiently on their accruals jeopardize their future profitability: growth obviously works pro-cyclically while efficiency countercyclically.

scholarly journals The accrual anomaly in the Greek stock market

2016 ◽  
Vol 13 (2) ◽  
pp. 322-333 ◽  
Author(s):  
Georgios A. Papanastasopoulos ◽  
Andreas I. Tsalas ◽  
Dimitrios D. Thomakos
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Capital Market ◽  
Abnormal Returns ◽  
Accrual Anomaly ◽  
Negative Relation ◽  
Economic Significance ◽  
Positive Growth ◽  
Greek Economy ◽  
Macroeconomic Implications

The authors examine the negative relation of traditional accruals and % accruals with future returns in the Greek stock market. Positive abnormal returns from hedge portfolios on both accrual measures summarize the economic significance of this negative relation. The magnitude of returns obtained from traditional accruals is higher than that obtained from % accruals, contrary to existing evidence from the U.S. capital market. The analysis suggests that the accrual anomaly appears to be present in the Greek stock market: this has macroeconomic implications because firms with low reported accruals may exhibit higher stock returns and at this time, during the ongoing Greek capital market crisis, investors are more likely to gain substantial abnormal returns in the future – if and when the Greek economy returns to positive growth

External Factors of Big Business Transformation in Russia

2005 ◽  
pp. 72-89 ◽  
Author(s):  
Ya. Pappe ◽  
Ya. Galukhina
Keyword(s):  
Financial Market ◽  
Capital Market ◽  
Business Groups ◽  
External Factors ◽  
Big Business ◽  
Business Transformation ◽  
Global Standards ◽  
The World ◽  
Principal Subject

The paper is devoted to the role of the global financial market in the development of Russian big business. It proves that terms and standards posed by this market as well as opportunities it offers determine major changes in Russian big business in the last three years. The article examines why Russian companies go abroad to attract capital and provides data, which indicate the scope of this phenomenon. It stresses the effects of Russian big business’s interaction with the world capital market, including the modification of the principal subject of Russian big business from integrated business groups to companies and the changes in companies’ behavior: they gradually move away from the so-called Russian specifics and adopt global standards.

Institutional Investors on the Securities Market

2003 ◽  
pp. 95-101
Author(s):  
O. Khmyz
Keyword(s):  
Financial Crisis ◽  
Capital Market ◽  
Hedge Funds ◽  
Institutional Investors ◽  
Securities Market ◽  
Main Role ◽  
Investment Funds ◽  
Investment Process ◽  
The Capital Market

Acording to the author's opinion, institutional investors (from many participants of the capital market) play the main role, especially investment funds. They supply to small-sized investors special investment services, which allow them to participate in the investment process. However excessive institutialization and increasing number of hedge-funds may lead to financial crisis.

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