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dc.contributor.authorFarshadfar, S
dc.contributor.authorMonem, R
dc.contributor.editorProfessor R. Abdel-khalik
dc.date.accessioned2017-05-03T15:14:21Z
dc.date.available2017-05-03T15:14:21Z
dc.date.issued2013
dc.date.modified2013-12-17T21:45:22Z
dc.identifier.issn0020-7063
dc.identifier.doi10.1016/j.intacc.2012.12.001
dc.identifier.urihttp://hdl.handle.net/10072/54959
dc.description.abstractBased on within-sample and out-of-sample tests on 348 listed Australian companies over 1992-2004, we find that direct method cash flow components have greater predictive ability for future cash flows than for aggregate operating cash flows. Unlike prior research, we use actual direct method cash flow data instead of estimated data in our forecasting models. The results are robust to a battery of sensitivity tests, including control for firm size, industry membership, profitability, negative cash flows, and the length of the operating cash cycle. Moreover, our results remain qualitatively similar for forecast horizons up to six years. Our findings directly contribute to the policy debate on whether standard setters should mandate direct method cash flow statements.
dc.description.peerreviewedYes
dc.description.publicationstatusYes
dc.format.extent268557 bytes
dc.format.mimetypeapplication/pdf
dc.languageEnglish
dc.language.isoeng
dc.publisherElsevier
dc.publisher.placeUnited Kingdom
dc.relation.ispartofstudentpublicationN
dc.relation.ispartofpagefrom111
dc.relation.ispartofpageto133
dc.relation.ispartofissue1
dc.relation.ispartofjournalThe International Journal of Accounting
dc.relation.ispartofvolume48
dc.rights.retentionY
dc.subject.fieldofresearchFinancial accounting
dc.subject.fieldofresearchcode350103
dc.titleFurther Evidence on the Usefulness of Direct Method Cash Flow Components for Forecasting Future Cash Flows
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
gro.rights.copyright© 2013 Elsevier. 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.issued2013
gro.hasfulltextFull Text
gro.griffith.authorMonem, Reza


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