This paper discusses the implications of using a change in working capital approach to measure accruals and the importance of the distinction between accruals and deferrals in the context of evaluating extant earnings management models. From this discussion, I develop a cash flow mapping model...

A longstanding literature suggests that earnings provide the market with relevant information about firm performance, but one often overlooked benefit is their role in disciplining market expectations. This study examines the role of earnings announcements in constraining potential mispricing...