1. beginning in the fourth month after the fiscal year end. The p-values are based on two-tailed Fama-McBeth t-statistics computed over the 16 annual mean returns in a decile and the standard deviation of these 16 observations. The break points between deciles are based on the previous year's cutoffs, so the number of observations in each decile varies slightly. Operating accruals are defined as Net Income (Compustat item 172) less Cash from Operations (item 308) divided by average total assets (item 6). The look-ahead bias requires that next year's net income not be missing. Percent Operating Accruals has the same numerators as Operating Accruals but the denominator is the absolute value of Net Income. Loss or Gain is based on the sign of Net Income;Barber References;Returns are the time-series mean annual buy-and-hold size-adjusted returns,1999
2. Investor Sophistication and Patterns in Stock Returns after Earnings Announcements;E Bartov;The Accounting Review,2000
3. Insider trading, earnings quality and accrual mispricing;M Beneish;The Accounting Review,2002
4. Do Analysts and Auditors Use Information in Accruals;M Bradshaw;Journal of Accounting Research,2001