Further evidence of the relationship between accruals and future cash flows

No Thumbnail Available
File version
Author(s)
Farshadfar, Shadi
Monem, Reza
Griffith University Author(s)
Primary Supervisor
Other Supervisors
Editor(s)
Date
2017
Size
File type(s)
Location
License
Abstract

Focusing only on operating accruals in accrual‐based studies results in a loss of information and noisy measures of both accrual and cash flow components of earnings. Thus, we examine the relative importance of working capital accruals, non‐current operating accruals, and financing accruals with regard to future cash flows from operations (CFO). Using Australian data, we provide evidence that both working capital and non‐current operating accruals are important for explaining future CFO but that the contribution of financing accruals is not significant. Moreover, the asset component of accruals plays a more important role in explaining future CFO than the liability component.

Journal Title

Accounting and Finance

Conference Title
Book Title
Edition
Volume
Issue
Thesis Type
Degree Program
School
Publisher link
Patent number
Funder(s)
Grant identifier(s)
Rights Statement
Rights Statement
Item Access Status
Note

This publication has been entered into Griffith Research Online as an Advanced Online Version.

Access the data
Related item(s)
Subject

Financial accounting

Persistent link to this record
Citation
Collections