Earnings, Cash Flows and Security Returns Over Long Return Intervals: Analysis and UK Evidence
The aim of this paper is to provide a fuller understanding of the process linking security returns and accounting data by focusing on the effect of long return intervals on the association between security returns and earnings and cash flow variables. First, we develop a theoretical basis for empirical analysis of the relationship between security returns and cash flow data over long return intervals. Second, we carry out empirical analysis of both the information content of cash flow variables and the incremental information content of accounting earnings and cash flows using UK data over the period 1985-92 for annual, two year and four year return intervals. Our results provide strong evidence of the valuation relevance of cash flow information for the dataset examined. Copyright Blackwell Publishers Ltd 1999.
Year of publication: |
1999-04
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Authors: | Charitou, Andreas ; Clubb, Colin |
Published in: |
Journal of Business Finance & Accounting. - Wiley Blackwell, ISSN 0306-686X. - Vol. 26.1999-04, 3-4, p. 283-312
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Publisher: |
Wiley Blackwell |
Saved in:
freely available
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