search query: @indexterm CASH FLOW / total: 488
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| Author: | Sloan, R. |
| Title: | Do stock prices fully reflect information in accruals and cashflows about future earnings? |
| Journal: | Accounting Review
1996 : JUL, VOL. 71:3, p. 289-316 |
| Index terms: | SHARE PRICES INFORMATION CASH FLOW |
| Language: | eng |
| Abstract: | This paper investigates whether stock prices reflect information about future earnings contained in the accrual and cash flow components of current earnings. The extent to which current earnings performance persists into the future is shown to depend on the relative magnitudes of the cash and accrual components of current earnings. However, stock prices are found to act as if investors "fixate" on earnings, failing to reflect fully information contained in the accrual and cash flow components of current earnings until that information impacts future earnings. |
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