Further Evidence on Empirical Relationships between Earnings and Cash Flows
This paper provides evidence on relationships between earnings and cash flow measures for the firms accepted in Tehran Stock Exchange (TSE) over a sample of 83 firms during the period of 1376- 1385. In so doing, we examine the external validity of a U.S.A study of these relationships by Bowen,...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
| Published: |
Allameh Tabataba'i University Press
2006-09-01
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| Series: | مطالعات تجربی حسابداری مالی |
| Subjects: | |
| Online Access: | https://qjma.atu.ac.ir/article_4218_52e79ff9c2c881b7c6c5cf90c478357a.pdf |
| _version_ | 1797378369354989568 |
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| author | Mohammad Arabmazar Yazdi Mohammad Hosein Safarzadeh |
| author_facet | Mohammad Arabmazar Yazdi Mohammad Hosein Safarzadeh |
| author_sort | Mohammad Arabmazar Yazdi |
| collection | DOAJ |
| description | This paper provides evidence on relationships between earnings and cash flow measures for the firms accepted in Tehran Stock Exchange (TSE) over a sample of 83 firms during the period of 1376- 1385. In so doing, we examine the external validity of a U.S.A study of these relationships by Bowen, Burgstahler and Daley (1986). We also extend their study through an industry analysis of the relationships.
Evidence is presented first that shows low correlations between traditional cash flow measures and a more refined cash flow measure. Second, traditional cash flow measures exhibit high correlations with earnings, while the more refined cash flow measure has a lower correlation with earnings. Finally, traditional cash flow measures better predict future cash flows than models based on earnings or a more refined cash flow measure. The industry evidence shows that the results on the first two issues, but not the latter issue, are generalizable across industry categories. |
| first_indexed | 2024-03-08T20:05:56Z |
| format | Article |
| id | doaj.art-453c1659e79341d88f932caec7a88acc |
| institution | Directory Open Access Journal |
| issn | 2821-0166 2538-2519 |
| language | fas |
| last_indexed | 2024-03-08T20:05:56Z |
| publishDate | 2006-09-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | مطالعات تجربی حسابداری مالی |
| spelling | doaj.art-453c1659e79341d88f932caec7a88acc2023-12-23T10:33:25ZfasAllameh Tabataba'i University Pressمطالعات تجربی حسابداری مالی2821-01662538-25192006-09-014151204218Further Evidence on Empirical Relationships between Earnings and Cash FlowsMohammad Arabmazar Yazdi0Mohammad Hosein Safarzadeh1دانشیار حسابداری دانشگاه شهید بهشتیدانشجوی دوره دکتری حسابداری دانشگاه تهرانThis paper provides evidence on relationships between earnings and cash flow measures for the firms accepted in Tehran Stock Exchange (TSE) over a sample of 83 firms during the period of 1376- 1385. In so doing, we examine the external validity of a U.S.A study of these relationships by Bowen, Burgstahler and Daley (1986). We also extend their study through an industry analysis of the relationships. Evidence is presented first that shows low correlations between traditional cash flow measures and a more refined cash flow measure. Second, traditional cash flow measures exhibit high correlations with earnings, while the more refined cash flow measure has a lower correlation with earnings. Finally, traditional cash flow measures better predict future cash flows than models based on earnings or a more refined cash flow measure. The industry evidence shows that the results on the first two issues, but not the latter issue, are generalizable across industry categories.https://qjma.atu.ac.ir/article_4218_52e79ff9c2c881b7c6c5cf90c478357a.pdfearningstraditional cash flow measuresmore refined cash flow measurecorrelation |
| spellingShingle | Mohammad Arabmazar Yazdi Mohammad Hosein Safarzadeh Further Evidence on Empirical Relationships between Earnings and Cash Flows مطالعات تجربی حسابداری مالی earnings traditional cash flow measures more refined cash flow measure correlation |
| title | Further Evidence on Empirical Relationships between Earnings and Cash Flows |
| title_full | Further Evidence on Empirical Relationships between Earnings and Cash Flows |
| title_fullStr | Further Evidence on Empirical Relationships between Earnings and Cash Flows |
| title_full_unstemmed | Further Evidence on Empirical Relationships between Earnings and Cash Flows |
| title_short | Further Evidence on Empirical Relationships between Earnings and Cash Flows |
| title_sort | further evidence on empirical relationships between earnings and cash flows |
| topic | earnings traditional cash flow measures more refined cash flow measure correlation |
| url | https://qjma.atu.ac.ir/article_4218_52e79ff9c2c881b7c6c5cf90c478357a.pdf |
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