Suppose there is an increase in the use of fair value estimates in financial reporting. How might this affect the earnings portfolio return patterns plotted below?

030 025 Positive earnings change 020 -0.192 0.15 Positive change in cash flow from operations 0.10 Cumulative abnormal retum Negative change in cash flow from operations -0.05 -0.037 -0.15 Negative earnings change -0.164 -0.20 + - 12 -11 -10 -9 3 4 5 6 -8 -7 -6 5 4 -3 -2 1 0 1 2 Months relative to announcement of 4th quarter earnings