IDEAS home Printed from https://ideas.repec.org/a/bla/acctfi/v55y2015i2p497-518.html
   My bibliography  Save this article

Does news play an important role in the correction process of the accrual anomaly?

Author

Listed:
  • Pyung K. Kang
  • Dan Palmon
  • Ari Yezegel
  • Steven Cahan

Abstract

type="main" xml:id="acfi12060-abs-0001"> We examine whether the financial press plays an important role in the correction of the accruals anomaly. Using 83,016 Wall Street Journal news articles published during 1993–2006, we find that a significant fraction of abnormal returns associated with the accruals trading strategy is concentrated on news days. The clustering of returns on news announcements is consistent with the financial press revealing information valuable for the correction of accruals mispricing. Further, we find that earnings-related news is more influential in the correction process than non-earnings-related news. Collectively, the results suggest that the financial press provides useful information to capital market participants.

Suggested Citation

  • Pyung K. Kang & Dan Palmon & Ari Yezegel & Steven Cahan, 2015. "Does news play an important role in the correction process of the accrual anomaly?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 55(2), pages 497-518, June.
    • Handle: RePEc:bla:acctfi:v:55:y:2015:i:2:p:497-518
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/acfi.2015.55.issue-2
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:acctfi:v:55:y:2015:i:2:p:497-518. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/aaanzea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.