TY - JOUR
T1 - Financial distress, relative performance and takeovers as drivers for abnormal accruals
AU - Zuo, Lingyan
AU - Hussain, Simon
PY - 2008/5
Y1 - 2008/5
N2 - 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'.
AB - 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'.
UR - http://www.scopus.com/inward/record.url?scp=42449085341&partnerID=8YFLogxK
U2 - 10.1080/17446540701630064
DO - 10.1080/17446540701630064
M3 - Article
AN - SCOPUS:42449085341
SN - 1744-6546
VL - 4
SP - 183
EP - 186
JO - Applied Financial Economics Letters
JF - Applied Financial Economics Letters
IS - 3
ER -