Return on assets and the cash flow from operations are included in the model to control for extreme performance, which may affect the level of accruals (McNichols, 2000; Kothari, Leone and Wasley, 2005).
Return on assets andthe cash flow from operations are included in the model to control for extremeperformance, which may affect the level of accruals (McNichols, 2000; Kothari,Leone and Wasley, 2005).