IDEAS home Printed from https://ideas.repec.org/a/taf/raflxx/v4y2008i3p183-186.html
   My bibliography  Save this article

Financial distress, relative performance and takeovers as drivers for abnormal accruals

Author

Listed:
  • Lingyan Zuo
  • Simon Hussain

Abstract

Our article examines abnormal accruals for a large sample of UK firms between 1994 and 2004, standardized so as to control for firm size, profitability, growth, information asymmetry and debt. We find that financial distress, proxied by a bankruptcy prediction model developed for UK firms (Charitou et al., 2004), and profitability relative both to cross-sectional and industry-specific norms, are important determinants of abnormal accruals: this is consistent with Peasnell et al. (2000) and Butler et al. (2004). Our results also confirm the suggestion by Jiraporn (2005) that abnormal accruals for acquired firms do not appear to display a particular ‘sign’.

Suggested Citation

  • Lingyan Zuo & Simon Hussain, 2008. "Financial distress, relative performance and takeovers as drivers for abnormal accruals," Applied Financial Economics Letters, Taylor & Francis Journals, vol. 4(3), pages 183-186.
    • Handle: RePEc:taf:raflxx:v:4:y:2008:i:3:p:183-186
    DOI: 10.1080/17446540701630064
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17446540701630064
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17446540701630064?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:raflxx:v:4:y:2008:i:3:p:183-186. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rafl20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.