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http://hdl.handle.net/10397/90052
Title: | Does cash-based operating profitability explain the accruals anomaly in China? |
Authors: | Du, Q Wang, Y Wei, KCJ |
Issue Date: | Jun-2020 |
Source: | Pacific basin finance journal, June 2020, v. 61, 101336 |
Abstract: | We investigate the relations between accruals, operating profitability, cash-based operating profitability, and the cross-section of expected stock returns in U.S. and Chinese markets. By replicating the main results in Ball et al. (2016 JFE), we confirm that cash-based operating profitability subsumes the return predictability of accruals and operating profitability in the U.S. market. Extending to the Chinese market, we similarly find that operating profitability and cash-based profitability can both predict returns but in contrast, operating profitability subsumes cash-based profitability. |
Keywords: | Accruals Cash-based operating profitability Operating profitability Return predictability |
Publisher: | Elsevier |
Journal: | Pacific basin finance journal |
ISSN: | 0927-538X |
DOI: | 10.1016/j.pacfin.2020.101336 |
Rights: | © 2020 Elsevier B.V. All rights reserved. © 2020. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/. The following publication Du, Q., Wang, Y., & Wei, K. C. J. (2020). Does cash-based operating profitability explain the accruals anomaly in China? Pacific-Basin Finance Journal, 61, 101336 is available at https://dx.doi.org/10.1016/j.pacfin.2020.101336. |
Appears in Collections: | Journal/Magazine Article |
Files in This Item:
File | Description | Size | Format | |
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PBFJ_Accrual_PolyU.pdf | Pre-Published version | 1.34 MB | Adobe PDF | View/Open |
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