现金流量与特殊项目对公司盈余持续性异常的影响外文翻译.docVIP

外文翻译 原文 The persistence of earnings and cash ?ows and the role of special items: Implications for the accrual anomaly Material Source: Springer Science+Business Media, LLC 2006 Author: Patricia M. Dechow ·Weili Ge We argue that high accruals are likely to be the outcome of rules with an income statement perspective, while low accruals are likely to be the outcome of rules with a balance sheet perspective, and that this has implications for the properties of earnings. Speci?cally, earnings persistence is affected both by the magnitude and sign of the accruals. Accruals improve the persistence of earnings relative to cash ?ows in high accrual ?rms, but reduce earnings persistence in low accrual ?rms. We show that the low persistence of earnings in low accrual ?rms is primarily driven by special items. We then show that special item-low accrual ?rms have higher future stock returns than other low accrual ?rms. This is consistent with investors misunderstanding the transitory nature of special items. Further analysis reveals that special item low accrual ?rms have poor past performance and declines in investor recognition (analyst coverage and institutional holdings). Special items continue to explain future returns after controlling for these factors. Accrual adjustments made by ?rms are fundamentally linked to underlying economics. Large positive accruals are indicative of ?rms increasing their asset bases, while large negative accruals are indicative of ?rms reducing their assets and exiting businesses. In this paper we suggest that the applicable accounting rules re?ected in accruals differ for ?rms increasing or reducing their asset bases and that this has implications for earnings persistence. We then examine implications of this insight for the accrual anomaly documented by Sloan(1996). Firms with large positive accruals are investing in assets, generating sales,and expanding their businesses. Due to the conservative nature of accounting and reliability conce