Fundamentals or Managerial Discretion? The Relationship between Accrual Variability and Future Stock Return Volatility.
This study extends the theoretical framework of Callen and Segal (2004) and Vuolteenaho (2002) to investigate the association between accrual variability and firm-level stock return volatility. The empirical evidence supports our prediction that increased uncertainty in current-period accounting acc...
| Publicado en: | Abacus Vol. 49; no. 4; pp. 441 - 476 |
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| Autores principales: | , , |
| Formato: | Artículo |
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Wiley-Blackwell
Dec2013
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=92983877&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 92983877 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00013072 AUB jtl: Abacus issn: 00013072 maglogo: Y pubinfo: dt: Dec2013 vid: 49 iid: 4 pid: 480 pub: Wiley-Blackwell artinfo: ui: 92983877 10.1111/abac.12015 ppf: 441 ppct: 35 formats: fmt: – @attributes: type: T – @attributes: type: P size: 238KB tig: atl: Fundamentals or Managerial Discretion? The Relationship between Accrual Variability and Future Stock Return Volatility. aug: au: Shan, Yaowen Taylor, Stephen Walter, Terry affil: UTS Business School, University of Technology, Sydney Sirca Limited su: Accrual basis accounting Rate of return on stocks Volatility (Securities) Idiosyncratic risk (Securities) Mathematical decomposition Uncertainty (Information theory) Cash flow Organizational structure sug: subj: Accrual basis accounting Rate of return on stocks Volatility (Securities) Idiosyncratic risk (Securities) Mathematical decomposition Uncertainty (Information theory) Cash flow Organizational structure keyword: Accruals variability Fundamental and discretionary components Managerial discretion Stock return volatility Systematic and idiosyncratic risk ab: This study extends the theoretical framework of Callen and Segal (2004) and Vuolteenaho (2002) to investigate the association between accrual variability and firm-level stock return volatility. The empirical evidence supports our prediction that increased uncertainty in current-period accounting accruals is associated with significantly higher volatility of future stock returns, and the results are valid for measures of both systematic and idiosyncratic volatility. When accrual variability is decomposed into fundamental and discretionary portions, we find that the positive relationship between accrual variability and future stock return volatility is dominated by the fundamental component of accrual variability. Overall, our results suggest that uncertainty reflected in accrual information is subsequently reflected in the fluctuation of future stock returns, and that the predictive content in accruals primarily reflects firms' fundamental uncertainty, rather than any effects of managerial choices and interventions in the accounting process. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y custom: Copyright of Abacus is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. item: Abacus holder: Wiley-Blackwell dt: @attributes: year: 2013 holdings: @attributes: islocal: N |
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