TY  - JOUR
AB  - Purpose– The purpose of this paper is to generate empirical evidence that facilitates our understanding of the market pricing for cash flows and accruals.Design/methodology/approach– The study is empirical in nature, and utilizes and archival methodology.Findings– The evidence in this study supports the primary hypothesis that the market valuations for the receivable accrual are greater than the valuations for other current accruals. Additionally, the results suggest that market valuations for cash flows are not monotonically greater than the valuations for accruals.Research limitations/implications– Overall, the results of this study suggest that inferences about the market's valuation of cash flows and accruals must consider multiple sources of variation in a concurrent fashion.Practical implications– Models for equity valuation used by financial analysts, institutional investors, etc. should allow the various components of accruals to act independently.Originality/value– This study contributes to the literature by synthesizing various aspects of capital markets research in accounting to enhance our understanding of the role that cash flows and accruals maintain for equity valuation.
VL  - 7
IS  - 2
SN  - 1475-7702
DO  - 10.1108/14757700810874128
UR  - https://doi.org/10.1108/14757700810874128
AU  - Francis Rick
PY  - 2008
Y1  - 2008/01/01
TI  - Market valuation of accrual components
T2  - Review of Accounting and Finance
PB  - Emerald Group Publishing Limited
SP  - 150
EP  - 166
Y2  - 2024/04/23
ER  -