The Information Content of Cash Flows Components and Accounting Earnings for Explaining Stock Market Activity : Egyptian Evidence
Purpose – The purpose of this paper is to highlight the role of the information content of cash flows and accounting earnings in explaining changes in the Egyptian stock market activity.Design/methodology/approach – The paper uses multiple regression models. The sample used in the current study consists of 13 banks that are listed on the Egyptian stock market in the period from 2002 to 2016 resulting in 195 observations.Findings – There is a significant negative relationship between changes in cash flows from investing activities and stock return, and there is a significant positive relationship between bank size and stock return. There is a significant positive relationship between changes in each component of cash flows and trading volume. There is a significant positive relationship between bank size and trading volume. There is a significant positive relationship between changes in each component of cash flows and trading value. There is a significant positive relationship between bank size and trading value. There is a significant positive relationship between bank size and stock return. There is a significant positive relationship between changes in earnings before extraordinary items and trading volume. There is a significant positive relationship between bank size and trading volume. There is a significant positive relationship between changes in earnings before extraordinary items and trading value. There is a significant positive relationship between bank size and trading value. The combined regression model integrating cash flows components and earnings before extraordinary items have higher explanatory power for changes in stock return, trading volume, and trading value than that of the individual models of cash flow components or earnings before extraordinary items separately.Originality/value – o the best of the author's knowledge, there are no Egyptian studies to date examining the effect of cash flows component and accounting earnings on stock market activity. Consequently, this paper contributes to the limited literature by suggesting a new measure for stock market activity by using stock return; trading volume; trading value. Furthermore, it is the first paper to investigate the relationship between cash flows and accounting earnings on stock market activity in the banking sector
Year of publication: |
[2021]
|
---|---|
Authors: | Magdy, Osama |
Publisher: |
[S.l.] : SSRN |
Subject: | Cash Flow | Cash flow | Ägypten | Egypt | Börsenkurs | Share price | Aktienmarkt | Stock market | Kapitaleinkommen | Capital income | Informationswert | Information value | Gewinn | Profit | Betriebliche Finanzwirtschaft | Managerial finance |
Saved in:
freely available
Extent: | 1 Online-Ressource (44 p) |
---|---|
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 1, 2017 erstellt |
Other identifiers: | 10.2139/ssrn.3763489 [DOI] |
Classification: | M41 - Accounting |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10013243566
Saved in favorites
Similar items by subject
-
Hribar, Paul, (2018)
-
The impact pf earnings extremity of information content of cash flow
Mostafa, Wael, (2013)
-
How informative are the unpredictable components of earnings forecasts?
Bruijn, Bert de, (2015)
- More ...
Similar items by person