Abstract：
Management’s opportunistic behavior is not only under the constraints of the total accumulated accrual, but also with the reversal of the speed. This paper estimates the reversal cycle by a reversal model of cumulative accruals with autocorrelation coefficient. Empirical test is made based on last decade samples of Shenzhen and Shanghai A-share. Results show that the average period of reversal cycle is four years. As expected the discretionary accruals have negative effect to the role in the following reversal cycle.
2013 
