This paper suggests a new measure of one aspect of the quality of working capital accruals
and earnings. One role of accruals is to shift or adjust the recognition of cash flows over time …

… Instead, similar to Burgstahler and Dichev [1997], we exploit the large sample size by
reporting histograms of the differences between firms’ reported accounting measures and the …

Several studies suggest that a firm distress risk factor could be behind the size and the book‐to‐market
effects. A natural proxy for firm distress is bankruptcy risk. If bankruptcy risk is …

We provide insights into earnings quality from a survey of 169 CFOs of public companies
and in-depth interviews of 12 CFOs and two standard setters. CFOs believe that (i) above all, …

This paper develops and tests an option-style valuation model, whose main prediction is
that equity value is a convex function of both earnings and book value, where the function …

… We test whether earnings volatility information allows the identification of predictable
forecast errors using two complementary specifications, “levels” and “changes”, depending on …

Using essentially all Moody's bond ratings changes between 1970 and 1997, we find no
reliable abnormal returns following upgrades. However, we find negative abnormal returns on …

We present a theory that poor matching manifests as noise in the economic relation of
advancing expenses to earn revenues. As a result, poor matching decreases the correlation …

FASB adopted a balance sheet-based model of financial reporting about 30 years ago, and
this model has been gradually expanded and solidified to become the required norm around …

… Dichev is an associate professor of accounting at the University of Michigan Business School
in Ann Arbor, MI. dichev… article) practically precludes clean identification of relations at the …