國立臺灣大學財務金融學系Chan, KonanKonanChanChan, K.C.K.C.ChanJegadeesh, NarasimhanNarasimhanJegadeeshLakonishok, JosefJosefLakonishok2006-09-272018-07-092006-09-272018-07-092001-11http://ntur.lib.ntu.edu.tw//handle/246246/20060927122732289313An exclusive focus on bottom-line income misses important information about the quality of earnings. Ac-cruals (the difference between accounting earnings and cash flow) are reliably, negatively associated with future stock returns. Earnings increases that are accompanied by high accruals, suggesting low-quality earnings, are associated with poor future returns. We explore various hypotheses — earnings manipulation, extrapolative biases about future growth, and under-reaction to changes in business conditions —to explain accruals’ predictive power. Distinctions between the hypotheses are based on evidence from operating per-formance, the behavior of individual accrual items, discretionary versus nondiscretionary components of accruals, and special items. We check for robustness using within-industry comparisons, and data on U.K. stocks.application/pdf440498 bytesapplication/pdfzh-TWreporthttp://ntur.lib.ntu.edu.tw/bitstream/246246/20060927122732289313/1/6-3.pdf