... inferences. Finally, our study provides a framework researchers can follow to strengthen the construct validity of cash flow proxies. JEL Classifications: M41; G30; C01. We appreciate helpful comments from Dirk Black, Marcus Burger, Dan Collins, Mike Drake, Cristi Gleason, Paul Hribar, Jaron Wilde...

...H. Scott Asay; Jeffrey Hales; Cory Hinds; Kathy Rupar ABSTRACT There is limited evidence on the construct validity of the dependent measures commonly used in the literature on nonprofessional investor judgments. In this paper, we first survey the literature to understand the types of dependent...

... higher accruals quality in the presence of smoothing errors that do not convey any useful information about firm value. In this paper, we provide a comprehensive evaluation of construct validity for popular measures of accruals quality. We evaluate construct validity using three criteria. First, we...

...Sunil Dutta; Panos N. Patatoukas ABSTRACT Using a financial reporting and valuation model, we investigate the construct validity of Basu's (1997) asymmetric timeliness (AT) regression coefficient as a measure of conditional conservatism in corporate financial reporting. We predict...