introduced by Dechow & Dichev (2002). One essential element is the role of accrual estimation errors,

and another is whether the equity market impounds information about the quality of earnings. The basic

assumption is that the quality of accruals and earnings is decreasing as the magnitude of estimation

errors in the accruals is increasing. The paper contributes to the literature on accrual (and earnings)

quality by investigating not only the quality of aggregated accruals but also the quality of some more

specific company key accruals, where especially the two balance sheet accounts, inventory and accounts

receivable, are of interest. This is documented and discussed by relating empirical measures of the

quality of the different specific key-accruals as well as aggregated accruals quality vs. observable firm

characteristics (e.g. volatility of accruals and earnings, etc.). Further, since an analysis of this type in

general can be said to be somewhat mechanical, it is also investigated whether and how, the equity

market (e.g. observable earnings-price-ratios) impounds information about the quality of the different

accruals and earnings.

Download Info

To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

Publisher Info

Paper provided by University of Aarhus, Aarhus School of Business, Department of Business Studies in its series Financial Reporting Research Group Working Papers with number R-2004-01.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 21 pages
Date of creation: 25 Apr 2006
Date of revision:
Handle: RePEc:hhb:aarbfr:2004-001

Contact details of provider:
Postal: The Aarhus School of Business, Fuglesangs Allé 4, DK-8210 Aarhus V, Denmark
Fax: + 45 86 15 19 43
Web page: http://www.asb.dk/about/departments/bs.aspx
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Helle Vinbaek Stenholt).

Related research

Keywords: No; keywords;

Statistics

Access and download statistics

Did you know? About 2700 working paper series are listed on RePEc.

This page was last updated on 2009-12-23.