Extending Sloan (1996), Xie (2001) uses the Mishkin test to examine the market pricing of the persistence of cash flows and two accrual components (i.e., normal and abnormal accruals) in the United States during 1971–1992 and finds
that stock markets in the United States underprice the persistence of cash flows and normal accruals but overprice abnormal accruals. Overall,