Discussion of “Inventory Changes and Future Returns”

Discussion of “Inventory Changes and Future Returns” Review of Accounting Studies, 7, 189–193, 2002 C 2002 Kluwer Academic Publishers. Manufactured in The Netherlands. Discussion of “Inventory Changes and Future Returns” PAUL HRIBAR sph24@cornell.edu Johnson Graduate School of Management, Cornell University, Ithaca, NY 14853 The pricing of accruals has generated a substantial amount of research since Sloan (1996) first provided evidence that accounting accruals are mispriced by the market, and that forming a hedge portfolio on the basis of the accrued portion of net income could earn abnormal returns of over ten percent in the following year. This striking result has survived numerous robustness tests using different time periods, different measures of accruals, different risk adjustments, and examining whether the accrual mispricing is subsumed by other market anomalies. The result has always been the same—the market overprices the accrual component of net income. The fact that accruals are the life-blood of accounting makes this anomaly particularly intriguing to accounting academics. More recent studies have measured the reaction of var- ious intermediaries and market participants (e.g., analysts, auditors, institutional investors, etc.), and decomposed total accruals into finer partitions in order to learn more about the economic construct driving the anomaly. The Thomas and Zhang (2002) paper falls squarely http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Accounting Studies Springer Journals

Discussion of “Inventory Changes and Future Returns”

Loading next page...
 
/lp/springer_journal/discussion-of-inventory-changes-and-future-returns-mmWWTYoASt
Publisher
Kluwer Academic Publishers
Copyright
Copyright © 2002 by Kluwer Academic Publishers
Subject
Business and Management; Accounting/Auditing; Corporate Finance; Public Finance
ISSN
1380-6653
eISSN
1573-7136
D.O.I.
10.1023/A:1020274002135
Publisher site
See Article on Publisher Site

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

Monthly Plan

  • Read unlimited articles
  • Personalized recommendations
  • No expiration
  • Print 20 pages per month
  • 20% off on PDF purchases
  • Organize your research
  • Get updates on your journals and topic searches

$49/month

Start Free Trial

14-day Free Trial

Best Deal — 39% off

Annual Plan

  • All the features of the Professional Plan, but for 39% off!
  • Billed annually
  • No expiration
  • For the normal price of 10 articles elsewhere, you get one full year of unlimited access to articles.

$588

$360/year

billed annually
Start Free Trial

14-day Free Trial