Asymmetrically Timely Loss Recognition and the Accrual Anomaly

2015 ◽  
Author(s):  
Panos N. Patatoukas
Keyword(s):  
Accrual Anomaly ◽  
Timely Loss Recognition

scholarly journals Asymmetrically Timely Loss Recognition and the Accrual Anomaly: Evidence From Pakistan’s Non-financial Sectors

2020 ◽  
Vol 10 (3) ◽  
pp. 1
Author(s):  
Amna Asim ◽  
Danish Ahmed Siddiqui
Keyword(s):  
Stock Returns ◽  
Stock Exchange ◽  
Research Result ◽  
Negative Relationship ◽  
Cash Flows ◽  
Accrual Anomaly ◽  
Indicator Variable ◽  
Financial Firms ◽  
Conditional Conservatism ◽  
Timely Loss Recognition

An important role of Conditional conservatism is to align the timely expense recognition of revenue generated in terms of losses compared to the profit over negative components of accruals. Accrual anomaly shows asymmetric differential persistence for accruals and cash flows in years of economic gains rather than losses. The aim of this study to determine the asymmetric timely loss recognition and accrual anomaly of the non-financial firms listed at Pakistan Stock exchange (PSX). Top volume non-financial firms listed at PSX were taken for this study over a period of 2011 to 2018. The direct implication of this research on the pattern of pricing of accrual component of earning exhibits positive relationship of excess returns with accruals and stock returns; whereas negative relationship with earnings, market capitalization and indicator variable of profit firms. Overall, research result is consistent with Konstantinidi et al. (2015), the accrual effect on stock return is existent for earnings generated firms, while not apparent for loss firms. This evidence provides relevant information on the aspects of accrual anomaly and its association with the variables of conditional conservatism on the pricing of accrual during the profit years. 

Information Asymmetry and the Accrual Anomaly

2013 ◽  
Author(s):  
Ingoo Han ◽  
Bo Young Kim ◽  
Jaywon Lee ◽  
Sang Hyun Park
Keyword(s):  
Information Asymmetry ◽  
Accrual Anomaly

(Presentation Slides) Do Short-Sellers Arbitrage the Accrual Anomaly?

2010 ◽  
Author(s):  
David A. Hirshleifer ◽  
Siew Hong Teoh ◽  
Jeff Jiewei Yu
Keyword(s):  
Accrual Anomaly ◽  
Short Sellers
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