The 2007-2008 financial crisis and accrual anomaly
Loading...
Date
2015
Authors
Wang, Ye
University of Lethbridge. Faculty of Management
Journal Title
Journal ISSN
Volume Title
Publisher
Lethbridge, Alta. : University of Lethbridge, Faculty of Management.
Abstract
This paper investigates how the 2008 financial crisis affects the accrual anomaly documented by Sloan (1996). I find that the accrual anomaly increases during the financial crisis period and the increase in accrual anomaly does not differ between firms relying and not relying on external financing. Additional analysis shows that arbitrage risk and transaction costs could have contributed to the increase in accrual anomaly during the financial crisis period.
Description
Keywords
accrual anomaly , earnings fixation hypothesis , financial crisis