Earnings asymmetric timeliness in recognizing losses versus gains is the most commonly used measure of conditional accounting conservatism. However, this measure captures both accrual asymmetric timeliness and operating cash flow (CFO) asymmetric timeliness. Because cash flow asymmetry is not...

This paper examines the impact of measuring accruals as the change in successive balance sheet accounts, as opposed to measuring accruals directly from the statement of cash flows. We demonstrate that the balance sheet approach to measuring accruals, which is the dominant method used in the...

This paper investigates whether the accrual pricing anomaly documented by Sloan (1996) for annual data holds for quarterly data and whether this form of market mispricing is distinct from the post-earnings announcement drift anomaly. We find that the market appears to overestimate...