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dc.contributor.authorFarshadfar, Shadi
dc.contributor.authorNg, Chew
dc.contributor.authorBrimble, Mark
dc.contributor.editorMarkus Milne, Amanda Ball, Edwin Maberly
dc.date.accessioned2018-07-11T00:05:43Z
dc.date.available2018-07-11T00:05:43Z
dc.date.issued2008
dc.date.modified2010-09-29T06:52:01Z
dc.identifier.issn01140582
dc.identifier.doi10.1108/01140580810920236
dc.identifier.urihttp://hdl.handle.net/10072/21587
dc.description.abstractPurpose: This paper examines the relative predictive ability of earnings, cash flow from operations as reported in the cash flow statement, and two traditional measures of cash flows (i.e. earnings plus depreciation and amortisation expense, and working capital from operations) in forecasting future cash flows for Australian companies. Further, an empirical investigation of the extent to which firm size, as a contextual factor, influences the predictability of earnings and cash flow from operations is presented. Methodology: Our sample includes 323 companies listed on the Australian Stock Exchange between 1992 and 2004 (3,512 firm-years). We employ the ordinary least squares and fixed effects approaches to estimate our regression models. To evaluate the forecasting performance of the regression models, both within-sample and out-of-sample forecasting tests are employed. Findings: We provide evidence that reported cash flow from operations has more power in predicting future cash flows than earnings and traditional cash flow measures. Further, the predictability of both earnings and cash flow from operations significantly increases with firm size. However, the superiority of cash flow from operations to earnings in predicting future cash flows is robust across small, medium and large firms.
dc.description.peerreviewedYes
dc.description.publicationstatusYes
dc.languageEnglish
dc.language.isoeng
dc.publisherEmerald
dc.publisher.placeNorthhampton
dc.relation.ispartofstudentpublicationN
dc.relation.ispartofpagefrom254
dc.relation.ispartofpageto268
dc.relation.ispartofedition2008
dc.relation.ispartofissue3
dc.relation.ispartofjournalPacific Accounting Review
dc.relation.ispartofvolume20
dc.rights.retentionY
dc.subject.fieldofresearchAccounting, auditing and accountability
dc.subject.fieldofresearchcode3501
dc.titleThe relative ability of earnings and cash flow data in forecasting future cash flows: some Australian evidence.
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
dc.description.versionAccepted Manuscript (AM)
gro.facultyGriffith Business School, Department of Accounting, Finance and Economics
gro.rights.copyright© 2008 Emerald. This is the author-manuscript version of this paper. Reproduced in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
gro.date.issued2008
gro.hasfulltextFull Text
gro.griffith.authorBrimble, Mark A.


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