Do core and non-core cash flows from operations persist differentially in predicting future cash flows?

Review of Quantitative Finance and Accounting

Volumn 31, Issue 1, 2008, Pages 29-53

  Cheng, C S Agnes ^a   Hollie, Dana ^b  

^a LOUISIANA STATE UNIVERSITY   (United States)

^b UNIVERSITY OF COLORADO   (United States)

Author keywords

Cash flow prediction; Cash flow variability; Cash flows; Core cash flows

Indexed keywords

EID: 42149181184     PISSN: 0924865X     EISSN: 15737179     Source Type: Journal    
DOI: 10.1007/s11156-007-0062-7     Document Type: Article

References (43)

1. Aboody D, Barth ME, Kasnik R (1999) Revaluations of fixed assets and future firm performance: evidence from the U.K. J Acc Econ 26:149-178
2. Ali A (1994) The incremental information content of earnings, working capital from operations, and cash flows. J Acc Res 32:61-74
3. American Institute of Certified Public Accountants (1994) Special report of the special committee on financial reporting: meeting the information needs of investors and creditors
4. Bahnson PR, Miller PBW, Budge BP (1996) Nonarticulation in cash flow statements and implications for education, research and practice. Acc Horizon 10:1-15
5. Bamber L (1987) Unexpected earnings, firm size, and trading volume around quarterly earnings announcements. Acc Rev 62:510-532
6. Barth ME, Cram D, Nelson K (2001) Accruals and the prediction of future cash flows. Acc Rev 76(January):27-58
7. Beaver WH (1981) Financial reporting: an accounting revolution. Prentice-Hall, Inc., Englewood Cliffs
8. Bowen R, Burgstahler D, Daley L (1987) The incremental information content of accrual versus cash flows. Acc Rev 62:723-747
9. Burgstahler D, Jiambalvo J, Pyo Y (1998) The informativeness of cash flows for future cash flows. Working paper, University of Washington
10. Chaney PK, Jeter D (1994) The effect of deferred taxes on security prices. J Acc Audit Fin 9:91-116
11. Chang J (2002) Analysis of cash flow imperative for investors in difficult time: many chemical companies exclude statement of cash flows on earnings releases. Chemical Market Response. November 11, 2002
12. Cheng CSA, Liu CS, Schaefer T (1996) Earnings permanence and the incremental information content of cash flows from operations. J Acc Res 34(Spring):173-181
13. Cohen D (2004) Quality of financial reporting choice: determinants and economic consequences. Working paper, New York University
14. Dechow P (1994) Accounting earnings and cash flows as measures of firm performance: the role of accounting accruals. J Acc Econ 18:3-42
15. Dechow P, Dichev I (2002) The quality of accruals and earnings: the role of accrual estimation errors. Acc Rev 77:35-59
16. Dechow PM, Kothari SP, Watts RL (1998) The relation between earnings and cash flows. J Acc Econ 25:133-168
17. DeFond M, Hung M (2003) An empirical analysis of analysts' cash flow forecasts. J Acc Econ 35:73-100
18. Fairfield P, Sweeney R, Yohn TL (1996) Accounting classification and the predictive content of earnings. Acc Rev 71:337-355
19. Fama EF, MacBeth JD (1973) Risk, return, and equilibrium: empirical tests. J Polit Econ 81:607-636
20. FASB (1978) Statement of financial accounting concepts No. 1: objectives of financial reporting by business enterprises. FASB, Stamford, Conn
21. Finger C (1994) The ability of earnings to predict future earnings and cash flow. J Acc Res 32(Autumn):210-223
22. Francis J, LaFond R, Olsson P, Schipper K (2004) Costs of equity and earnings attributes. Acc Rev 79:967-1010
23. Greenberg RR, Johnson GL, Ramesh K (1986) Earnings versus cash flow as a predictor of future cash flow measures. J Acc Audit Fin 1:266-277
24. Grice JS, Dugan M (2001) The limitations of bankruptcy prediction models: Some cautions for the researcher. Rev Quant Fin Acc 17:151-166
25. Gu Z, Lee CWJ, Rosett J (2005) What determines the variability of accounting accruals? Rev Quant Fin Acc 24:313-334
26. Hair J, Anderson R, Tatham R, Black W (1998) Multivariate data analysis, 5th edn. Prentice Hall, Upper Saddle River
27. Hribar P, Collins DW (2002) Errors in estimating accruals: Implications for empirical research. J Acc Res 40:105-134
28. Jonas GJ, Blanchet J (2000) Assessing the quality of financial reporting. Acc Horizon 14:353-363
29. Krishnan G, Largay J (2000) The predictive ability of direct method cash flow information. J Bus Fin Acc 27:215-245
30. McNichols M, Wilson GP (1988) Evidence of earnings management from the provision for bad debts. J Acc Res 26:1-40
31. Minton B, Schrand C, Walther B (2002) The role of volatility in forecasting. Rev Acc Stud 7:195-215
32. Ohlson J (1980) Financial ratios and the probabilistic prediction of bankruptcy. J Acc Res 18:109-131
33. Penman SH, Sougiannis T (1998) A comparison of dividend, cash flow, and earnings approaches to equity valuation. Contemp Acc Res 15:343-383
34. Penman SH, Zhang X (2002) Accounting conservatism, the quality of earnings, and stock returns. Acc Rev 77:237-264
35. Petersen, Michael A (2006) Estimating standard errors in finance panel data sets: comparing approaches. Working paper, Northwestern University
36. Phillips J, Pincus M, Rego S. 2003 Earnings management: new evidence based on deferred tax expense. Acc Rev 78:491-521
37. Revsine L, Collins DW, Johnson WB (1999) Financial reporting & analysis. Prentice Hall, Upper Saddle River
38. Sloan R (1996) Do stock prices fully reflect information in accruals and cash flows about future earnings? Acc Rev 71:289-315
39. Vuong QH (1989) Likelihood ratio tests for model selection and non-nested hypotheses. Econometrica 57:307-333
40. Watts RL, Leftwich RW (1977) The time series of annual accounting earnings. J Acc Res 15:253-271
41. Wild J, Bernstein L, Subramanyam KR (2000) Financial statement analysis. Irwin/McGraw Hill, Burr Ridge
42. Wooldridge J (2000) Introductory econometrics: a modern approach. South-Western College Publishing, New York
43. Yohn T (1998) Information asymmetry around earnings announcements. Rev Quant Fin Acc 11:165-182