Limited attention, statement of cash flow disclosure, and the valuation of accruals
Bin Miao, Siew Hong Teoh, Zinan Zhu
Review of Accounting Studies · 2016 · Volume 21 · Issue 2
DOI: 10.1007/s11142-016-9357-z
Abstract
In the context of improved disclosure and greater transparency, including cash flow in our earnings release has helped increase investor confidence in our guidance as well as in the analyst’s estimates by giving them the tools they need to do their jobs.Jim Clippard, Vice President of Investor Relations, FedEx.From Randerson (2004, p. 50).
Keywords
Limited attention, Cash flow disclosure, Voluntary disclosure, Accrual valuation, Salience, Information processing cost
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