In his paper "Managing Reported Operating Cash Flow," accounting professor Richard Frankel found noncash working capital drops significantly in the fourth quarter and is then subsequently reversed in the first quarter of the next fiscal year. This temporary decrease in fourth-quarter noncash working capital remains significant after seasonal variation in the firm’s activity level, as proxied by quarterly contemporaneous, lead/lag sales and net income, are controlled for. Consistent with capital market incentives to manage reported cash flows, Frankel found firms attempt to beat benchmarks based on operating cash flow levels, changes and forecast errors. Examining contracting incentives, he found that firms mentioning working-capital-related compensation targets have larger fourth-quarter working capital declines but that these declines are not more likely to reverse.