Hirshleifer, David (contributor); Hou, Kewei (contributor); … - 2006
inefficient, and that investors naively fail to distinguish between the different forecasting
power of the accruals and cash flow … regression intercepts and therefore lacks
power against alternatives that make specific predictions regarding the patterns of …
accruals. In contrast, the mispricing theory predicts that CMA loading has no incremental
predictive power after controlling …