Accounting anomalies and fundamental analysis: A review of recent research advances

We survey recent research in accounting anomalies and fundamental analysis. We use forecasting of future earnings and returns as our organizing framework and suggest a roadmap for research aiming to document the forecasting benefits of accounting information. We combine this with opinions from the a...

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Bibliographic Details
Published in:	Journal of accounting & economics 2010-12, Vol.50 (2), p.410-454
Main Authors:	Richardson, Scott, Tuna, İrem, Wysocki, Peter
Format:	Article
Language:	eng
Subjects:	Accounting irregularities Accounting methods Accounting standards Accruals Accruals Anomalies Forecasting Fundamental analysis Market efficiency Risk Anomalies Business accounting Earnings forecasting Economic forecasts Financial accounting Financial reporting Forecasting Forecasts Fraud Fundamental analysis Market efficiency Review articles Risk Risk management Studies Transaction costs
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Summary:	We survey recent research in accounting anomalies and fundamental analysis. We use forecasting of future earnings and returns as our organizing framework and suggest a roadmap for research aiming to document the forecasting benefits of accounting information. We combine this with opinions from the academic and practitioner communities to critically evaluate key clusters of papers about accounting anomalies and fundamental analysis disseminated over the last decade. Finally, we provide a new analysis on how an ex ante and ex post treatment of risk and transaction costs affects the accrual and PEAD anomalies, and offer suggestions for future research.
ISSN:	0165-4101 1879-1980