Accruals Anomaly
An asset-pricing anomaly describing the observed relationship that firms with higher accruals (non-cash earnings components) tend to have lower subsequent stock returns, while those with lower accruals tend to have higher subsequent returns, after controlling for common risk factors.
Example: In a study, a firm with unusually high accruals (large non-cash earnings relative to cash flows) showed weaker cash flows in the next year, with a comparatively lower abnormal return than a firm with low accruals.
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