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| Author | : John Douglas Hanna |
| Publisher | : Ann Arbor, Mich. : University Microfilms International |
| Total Pages | : 268 |
| Release | : 1991 |
| Genre | : |
| ISBN | : |
| Author | : Ray J. Pfeiffer |
| Publisher | : |
| Total Pages | : |
| Release | : 1999 |
| Genre | : |
| ISBN | : |
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.
| Author | : Thomas A. Lee |
| Publisher | : Routledge |
| Total Pages | : 579 |
| Release | : 2014-02-05 |
| Genre | : Business & Economics |
| ISBN | : 1317975677 |
This collection explores Kuhn’s 1970 perception of a scientific revolution in the form of a cyclical sequence of anomaly recognition; insecurity, alternative ideas, schools of thought and dominating practices. Cash flow reporting has become a dominant accounting practice which emerged from a developmental process of Kuhnian form. The text is constructed around the various stages identified by Kuhn and selected readings are categorised accordingly.
| Author | : Moon Kyum Kim |
| Publisher | : |
| Total Pages | : 242 |
| Release | : 1991 |
| Genre | : Investment analysis |
| ISBN | : |
This study investigates whether alternative cash flow measures have an incremental information content over accounting measure. This study employes the arbitrage argument to establish an economic model which makes it possible to incorporate raw accounting variables into a return generating process. Based on the economic model, a new methodology, the spanning portfolio approach is used to extract the information contained in the accounting measures of cash flow. This issue is first examined by testing for an association between actual security returns and spanning returns of alternative cash flow measures. Secondly, the issue is analyzed in the context of explaining market risk. The results indicate that both cash flow and accrual accounting earnings have incremental information content relative to each other in explaining the actual security returns. Also, the results reveal that, in explaining market risk, only cash flow has information consistent with that contained in market risk measure (market beta) and provides significant incremental information over that provided by earnings. These findings imply that the accrual adjustment process in accounting may not be valuable at least for assessing the company's systematic risk.
| Author | : Michael Ofosu Mensah |
| Publisher | : |
| Total Pages | : 108 |
| Release | : 1990 |
| Genre | : Cash flow |
| ISBN | : |
| Author | : Samuel Tung |
| Publisher | : |
| Total Pages | : 30 |
| Release | : 2017 |
| Genre | : |
| ISBN | : |
Ohlson and Aier (2009) propose a model of modified cash accounting (MCA) for analyzing and evaluating a firm's cash flows. They suggest that MCA cash earnings provide a better measure of earnings than GAAP's measure, and that the MCA bottom line is more informative because it identifies earnings due to operations on a cash- and approximate cash-equivalent basis. However, there is no empirical test for the information content of MCA cash earnings proposed by Ohlson and Aier (2009). This study empirically examines the incremental information content of MCA cash earnings compared with cash flow from operations (CFO) and GAAP earnings per share (EPS) using stock returns as the benchmark for firms' performance during the 2001-2011 period. We find that MCA cash earnings provide incremental information content beyond CFO and EPS.
| Author | : Gordon Peter Wilson |
| Publisher | : |
| Total Pages | : 114 |
| Release | : 1986 |
| Genre | : Cash flow |
| ISBN | : |
| Author | : Daniel W. Collins |
| Publisher | : |
| Total Pages | : 41 |
| Release | : 2008 |
| Genre | : |
| ISBN | : |
Landsman and Maydew (2002) document that the information content of earnings announcements has increased over the past three decades, and Francis, Schipper, and Vincent (2002) conclude that expanded concurrent disclosures in firms' earnings announcements, especially the inclusion of detailed income statements, explain this increase. We posit and find that the temporal increase in the intensity of the market's reaction to Street earnings offers a competing explanation for the Landsman and Maydew finding. We also find that expanded concurrent disclosure of GAAP-based information contributes to the temporal increase in the information content of earnings announcements. However, unlike Francis et al., we find that the temporal increase in concurrent balance sheet and cash flow statement information dominates concurrent income statement information once we control for Street earnings.
| Author | : Francesco Paolone |
| Publisher | : Springer Nature |
| Total Pages | : 116 |
| Release | : 2020-07-29 |
| Genre | : Business & Economics |
| ISBN | : 3030506886 |
Although the concept “Cash is King” is today widely recognized, the cash flow statement was rather neglected until the EU accounting regulators discovered its relevance in explaining the real value of the business. This book investigates the value relevance of the operating cash flow as reported under the International Financial Reporting Standards (IAS/IFRS) for the largest European listed companies and US listed companies in the past recent years. Using the model based on the valuation theory developed by Ohlson, which measures the market value of equity as a function of accounting variables, the author concludes that operating cash flow represents a significant variable in determining the value relevance of the largest European and US listed companies. These findings provide siginificant implications for standard setters and support the continued requirements for disclosure of cash flow information under IAS 7.
| Author | : Ashiq Ali |
| Publisher | : |
| Total Pages | : 30 |
| Release | : 1992 |
| Genre | : |
| ISBN | : |
