Does Gig Economy Reshape Accrual Properties? Evidence from Uber Entry

51 Pages Posted: 13 Jan 2026 Clarkson University; Clarkson University Temple University - Department of Accounting Date Written: January 06, 2026 This study examines whether the emergence of the gig economy reshapes firms' accrual properties. Exploiting Uber's staggered entry across U.S. states as an exogenous shock, we find that accruals become less correlated with cash flows after Uber's market penetration. This effect is partly driven by increases in firms' human capital investments which are expensed rather than capitalized and do not necessarily translate into future cash flows. Consistent with this mechanism, the attenuation in the accrual-cash flow association is more pronounced for firms that adopt more employee-friendly workforce policies, provide greater employment insurance, and exhibit larger declines in accrual expense volatility. Collectively, our findings highlight how labor market shifts contribute to temporal changes in accrual properties, while underscoring the relevance of the SEC's 2020 amendment to Regulation S-K-which mandates enhanced disclosure of human capital investments-for financial statement users. Keywords: Accruals-Cash Flow Association, Gig Economy, Employee-Related Intangible Investment, Human Capital, Accrued Expense Suggested Citation: Suggested Citation Alter Hall 450 1801 Liacouras Walk Philadelphia, PA 19122 United States Financial Accounting eJournal Subscribe to this fee journal for more curated articles on this topic Labor: Human Capital eJournal Subscribe to this fee journal for more curated articles on this topic