Are the Equity Premium and the Value Premium Expected? Evidence from the Calendar of Cash-Flow News

2015 ◽  
Author(s):  
Claire Hong ◽  
Jialin Yu
Keyword(s):  
Cash Flow ◽  
Equity Premium ◽  
Value Premium ◽  
Cash Flow News

Cash Flow News and Stock Price Dynamics

2020 ◽  
Vol 75 (4) ◽  
pp. 2221-2270 ◽  
Author(s):  
DAVIDE PETTENUZZO ◽  
RICCARDO SABBATUCCI ◽  
ALLAN TIMMERMANN
Keyword(s):  
Cash Flow ◽  
Stock Price ◽  
Price Dynamics ◽  
Cash Flow News

Identifying the Roles of Accounting Accruals in Corporate Financial Reporting

2021 ◽  
pp. 0148558X2110352
Author(s):  
Sunil Dutta ◽  
Panos N. Patatoukas ◽  
Annika Yu Wang
Keyword(s):  
Cash Flow ◽  
Financial Reporting ◽  
Cash Flows ◽  
Timely Manner ◽  
Operating Cash Flows ◽  
Accounting Accruals ◽  
Operating Cash Flow ◽  
Cash Flow News ◽  
Corporate Financial Reporting

Research in corporate financial reporting identifies two important roles of accounting accruals. First, accruals smooth fluctuations in operating cash flows. Second, accruals allow recognition of losses in an asymmetric timely manner. While these two roles imply different relations between individual accrual components and operating cash flow news, prior research often focuses on the properties of aggregate accruals. We investigate the role of individual accrual components and identify asymmetry in the relation of investment with operating cash flow news as a confounding factor. We show that this investment factor operates through depreciation and amortization accruals, which typically account for the bulk of aggregate accruals. Overall, our article demonstrates the importance of adopting a granular approach to identifying the different roles of individual accrual components.

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