出版社：LLC “Consulting Publishing Company “Business Perspectives”
摘要：We reexamine market reactions to large and small working capital accruals and predict that the market is more likely to discount unexpected earnings when positive or negative large working capital accruals(LWCAs)lead to small increases in earnings.We find that the earnings response coefficient(ERC)is lower when small earnings increases are accompanied by LWCAs of either sign,but not in other cases.Results are robust to alternate definitions of working capital accruals and the inclusion of ERC control variables.The study contributes to extant literature by identifying specific situations where the market views LWCAs as earnings management.
关键词：Earnings management;large discretionary working capital accruals;earnings response coefficient;earnings quality.
