Moreover, in an attempt to address the "IPO puzzle," Teoh et al. (1998a,1998b) and Teoh, Wong, et al. (1998) find that unusual accruals occur at Initial Public Offering dates and subsequently reverse.The accruals appear to be associated with at least a portion of the negative abnormal returns identified in the IPO research. These findings are consistent with those of Sloan (1996), as well as Xie (2001) and DeFond and Park (2001), that security prices do not fully reflect either the nature of accruals or their implications for future earnings and valuation.