In other words, unlike the FLEX sub-sample, the evidence does not reveal higher pricing for accruals relative to cash flow
In other words, unlike the FLEX sub-sample, the evidence does not reveal higher pricing for accruals relative to cash flow In contrast, the non-FLEX subsample’s market-implied persistence of accruals (0.4020) is roughly equivalent (p = 0.6644) to the persistence parameter of accruals (0.4339) in the forecasting equation, while the market-implied persistence of cash flow (0.4039)…