Growth Opportunities, Earnings Permanence and the Valuation of Free Cash Flow
This paper examines empirically the effect of firm growth opportunities and earnings quality on the market valuation of free cash flow, defined as the difference between operating cash flows and capital expenditures. Equity valuation theory prescribes that free cash flow should not be associated wit...
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| Format: | Article |
| Language: | English |
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University of Wollongong
2011-12-01
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| Series: | Australasian Accounting, Business and Finance Journal |
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| Online Access: | http://ro.uow.edu.au/aabfj/vol5/iss4/8 |