dc.contributor.authorThomas, Jacob K.
dc.contributor.authorZhang, Huai
dc.date.accessioned2013-11-21T03:38:02Z
dc.date.available2013-11-21T03:38:02Z
dc.date.copyright2002en_US
dc.date.issued2002
dc.identifier.citationThomas, J. K., & Zhang, H. (2002). Inventory changes and future returns. Review of Accounting Studies, 7(2-3), 163-187.en_US
dc.identifier.issn1380-6653‎en_US
dc.identifier.urihttp://hdl.handle.net/10220/17807
dc.description.abstractWe find that the negative relation between accruals and future abnormal returns documented by Sloan (1996) is due mainly to inventory changes. We propose three explanations for this result, derived from the prior literature, but find evidence inconsistent with all three explanations. To assist future investigations in formulating additional explanations, we document several empirical regularities for extreme inventory change deciles. We speculate that demand shifts explain our results, and examine the feasibility of alternative reasons for the stock market's apparent inability to recognize the impending profitability reversals. Our evidence is consistent with earnings management masking the implications of demand shifts.en_US
dc.format.extent25 p.en_US
dc.language.isoenen_US
dc.relation.ispartofseriesReview of accounting studiesen_US
dc.rights© 2002 Kluwer Academic Publishers. This is the author created version of a work that has been peer reviewed and accepted for publication by Review of Accounting Studies, Kluwer Academic Publishers. It incorporates referee’s comments but changes resulting from the publishing process, such as copyediting, structural formatting, may not be reflected in this document. The published version is available at: [http://dx.doi.org/10.1023/A:1020221918065].en_US
dc.subjectDRNTU::Business::Accounting
dc.titleInventory changes and future returnsen_US
dc.typeJournal Article
dc.contributor.schoolCollege of Business (Nanyang Business School)en_US
dc.identifier.doihttp://dx.doi.org/10.1023/A:1020221918065
dc.description.versionAccepted versionen_US


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