<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>Interpreting accruals as working capital investment, we hypothesize based on "q"-theory that firms optimally adjust their accruals in response to discount rate changes. A higher discount rate means less profitable investments and lower accruals, and a lower discount rate means more...

<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>Prior research has documented that earnings announcements provide information not only about the announcing firm but also about other firms in the same industry. We document a stock market anomaly associated with this phenomenon of intra-industry information transfers by showing that the...