The Accruals Based Trading Strategy on the Swedish Stock Market: Does the benchmark when classifying extreme accrual firms have an impact on the trading strategy’s effectiveness?
Purpose: To investigate if it is possible to earn abnormal returns from the accruals based trading strategy in Sweden. The aim is also to examine if the benchmark used when classifying firms into accruals portfolios has an impact on the abnormal returns from the trading strategy. Methodology: The study investigates the abnormal returns from the trading strategy that aims to exploit the accruals a