Download or read book The Incremental Information Content of Accruals and Cash Flows After Controlling for Earnings written by Gordon Peter Wilson and published by . This book was released on 1986 with total page 114 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Additional Evidence on the Incremental Information Content of Cash Flows and Accruals written by Ray J. Pfeiffer and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study evaluates the relation between security returns and funds-based earnings components. We document that proxies for market expectations of the components that are based on measures of historical serial- and cross-dependencies are substantially more accurate than random-walk proxies. Moreover, we detect significantly higher valuations of the operating cash flow component of earnings, relative to current accruals when market expectations are represented using the dependency-based predictions. Such differential valuation is not detectable for random-walk representations. Contrary to results in Ali (1994), we find incremental information in unexpected cash flows over the whole spectrum (moderate and extreme) of unexpected cash flow realizations.

Download or read book The Incremental Information Content of Tone Change in Management Discussion and Analysis written by Suresh Govindaraj and published by . This book was released on 2009 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study explores whether the Management Discussion and Analysis (MDamp;A) section of Form 10-Q and 10-K has incremental information content beyond financial measures such as earnings surprises, accruals and operating cash flows (OCF). It uses a well-established classification scheme of words into positive and negative categories to measure the tone change in a specific MDamp;A section as compared to those of the prior four filings. Our results indicate that short window market reactions around the SEC filing are significantly associated with the tone of the MDamp;A section, even after controlling for accruals, OCF and earnings surprises. We also show that the tone of the MDamp;A section adds significantly to portfolio drift returns in the window of two days after the SEC filing date through one day after the subsequent quarter s preliminary earnings announcement, beyond financial information conveyed by accruals, OCF and earnings surprises. The incremental information of tone change is larger the weaker is the firm's information environment.

Download or read book the nature and amount of information reflected in cash flows and accruals written by victor l. bernard and thomas l. stober and published by . This book was released on 1989 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Informativeness and Predictability of Earnings and Cash Flows written by Zhemin Wang and published by . This book was released on 1991 with total page 236 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Incremental Information Content of Earnings written by Ashiq Ali and published by . This book was released on 1992 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Incremental Information Content of Accrual Versus Cash Flows in New Zealand written by Alister Lyall Hunt and published by . This book was released on 1990 with total page 130 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Valuation of Earnings and Cash Flows and Their Components written by Andreas A. Charitou and published by . This book was released on 1986 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The usefulness of accounting measures in predicting future cash flow written by Nikolay Draganov and published by GRIN Verlag. This book was released on 2021-08-10 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2021 in the subject Business economics - Accounting and Taxes, grade: 1,0, University of Cologne, language: English, abstract: The primary aim of this study is to empirically examine the relative ability of accounting earnings and cash flow to predict future cash flow. Moreover, the role of accruals in cash flow predictions is called into question. One of the major purposes of financial reporting consists in ensuring an informational basis that helps investors, creditors and other users of accounting data to overcome the uncertainty associated with the future cash flows of enterprises their financial activity relates to. At the same time, the accrual concept prevails in modern accounting, since it is theorized to mitigate the mismatching and timing problems of the unrefined cash ba-sis accounting. Hence, recognizing revenues and expenses in the period when they have occurred, and not when cash was received or paid out, should create a more relevant framework for decision making. The use of accrual accounting earnings as a summary measure of financial performance instead of the more primitive cash flows is therefore advocated by accounting standard setters. For instance, the Financial Accounting Stand-ard Board claims that: “Information about enterprise earnings and its components measured by accrual accounting generally provides a better indica-tion of enterprise performance than information about current cash receipts and pay-ments”. The FASB’s statement led to a rising discussion in the financial research on whether accounting earnings provide a more reliable picture of a company’s future operating cash flows than current operating cash flows themselves do. Hence, a major implication of the above quotation refers to the incremental power of accruals and its components in predicting future cash flows beyond the one contained into current operating cash flows. This debate represents a cornerstone in evaluating the information quality offered by the accrual accounting concept.

Download or read book Accruals Cash Flow and Equity Values written by Mary E. Barth and published by . This book was released on 2012 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: We find, as predicted, that the differential ability of accrual and cash flow components of earnings to help forecast future abnormal earnings and the persistence of the components results in the components having different valuation implications. We base our tests on Ohlson (1999) applied to fourteen industries. We find: (1) Accruals and cash flows aid in forecasting future abnormal earnings incremental to abnormal earnings and equity book value. (2) Accruals and cash flows provide explanatory power for equity market value incremental to equity book value and abnormal earnings. (3) There is evidence that accruals and cash flows valuation coefficients are consistent with the Ohlson model.

Download or read book The Informational Role and Value Relevance of Earnings Cash Flows and Accruals written by David J. Ashton and published by . This book was released on 2016 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we establish a theoretical relationship between earnings components and future stock returns. It shows the informational role of earnings, cash flows and accruals in predicting future stock returns and the key role played by the earnings response coefficient. It also suggests that the 'accrual anomaly' can be explained rationally. Accounting fundamentals jointly determine the covariance risk between uncertain future cash flows and the discount factor: accruals are encompassed as long as there exists differential persistence between cash flows and accruals after controlling for aggregate earnings. In particular, it is the deviation of (scaled) accruals from their long run mean rate that is vital in explaining the 'accrual anomaly'. Consequently, Sloan (1996) and similar results should not be interpreted as an accrual-based anomaly, instead they document important evidence of the possible fair pricing of accruals.

Download or read book Earnings quality and earnings management written by Sanjay Wikash Bissessur and published by Rozenberg Publishers. This book was released on 2005 with total page 217 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Incremental Information Content of Cash Flows and the Ability of Accrual Versus Cash Flows to Predict Future Cash Flows written by Dyna Seng and published by . This book was released on 1995 with total page 162 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book A Further Examination of the Incremental Information Content of Cash flow Announcements written by John Douglas Hanna and published by Ann Arbor, Mich. : University Microfilms International. This book was released on 1991 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Information Content of Cash Flows Versus Accrual based Income Numbers written by John Carolin and published by . This book was released on 2006 with total page 326 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Incremental Information Content of Accrual Accounting Earnings written by Judy Dawson Rayburn and published by . This book was released on 1985 with total page 186 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Earnings Measurement Determination Management and Usefulness written by Ahmed Riahi-Belkaoui and published by Bloomsbury Publishing USA. This book was released on 1999-11-30 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt: Riahi-Belkaoui examines the crucial issues involved in the determination and uses of earnings as a measure of financial performance. He points out that the nature and measurement of earnings are subject to various interpretations, that determination of earnings follows determination of net value added, and that earnings is subject to management manipulation (earnings can be smoothed, for example.) A succinct, penetrating, illuminating treatment of earnings in general as well as its particulars, the book will be especially useful to upper management and accounting professionals, and to their colleagues in the academic community. Riahi-Belkaoui argues that the interest in earnings and its related issues of measurement, determination, management, and usefulness stems from three factors: 1) the crucial importance of earnings as the shareholders' share of the corporation's wealth; 2) the reliance of investors and users on earnings and the transformation of earnings for resource allocation decision making; and 3), the direct association between the efficiency of the capital markets and timely provision of earnings data. Each chapter identifies the nature of the issues surrounding the concept of earnings and presents empirical evidence that can be used to make enlightened corporate decisions or to aid in the development of public policy.