On the basis of an accrual decomposition into two components capturing output growth and accounting distortions, this paper analyzes the effects of accounting accruals on firms' future performance in the U.K. stock market. Findings reveal a strong negative association of accruals with future...

Departmental and central government accountability to the UK Parliament was based principally on cash transactions for a period of over 300 years commencing with the Glorious Revolution of 1688. Beginning in the second decade of the nineteenth century, recurrent proposals for the replacement of...