... diversified, or the measurement error hypothesis, which predicts that these errors increase, prevails. Design/methodology/approach This study modifies an existing empirical framework that uses the downward bias inherent in earnings persistence to measure accrual reliability and applies it to a sample...

...Mingjun Zhou Purpose – This study aims to use research setting provided by the implementation of Financial Accounting Standards Board Interpretation 48 (FIN48) to help develop a further understanding of large positive book–tax differences (LPBTD) and their relationship with earnings persistence...