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dc.contributor.authorCohen, Daniel A.-
dc.contributor.authorLys, Thomas Z.-
dc.description.abstractBradshaw, Richardson, and Sloan (BRS) find a negative relation between their comprehensive measure of corporate financing activities and future stock returns and future profitability. Noticing that accounting accruals are increases in net operating assets on a company’s balance sheet, we question whether it is possible to distinguish between the ‘external financing anomaly’ documented by BRS and the ‘accrual anomaly’ first documented by Sloan (1996). We show that once controlling for total accruals, the relation between external financing activities and future stock returns is attenuated and not statistically significant. These findings are consistent with Richardson and Sloan (2003).en
dc.relation.ispartofseriesDaniel A. Cohen-11en
dc.subjectExternal financingen
dc.subjectAnalysts’ forecastsen
dc.subjectCapital Marketsen
dc.subjectMarket Efficiencyen
dc.titleWeighing the Evidence on the Relation between External Corporate Financing Activities, Accruals and Stock Returnsen
dc.typeWorking Paperen
Appears in Collections:Accounting Working Papers

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