Purpose – Firms are concerned about earnings per share (EPS) dilution after equity issues. The purpose of this paper is to investigate whether firms manage upward their discretionary accruals around seasoned equity offerings (SEOs) to mitigate the impact of dilution on reported earnings....

Purpose – Scholars have examined the importance of a firm's dividend policy through two competing paradigms: the signalling hypothesis and the free cash-flow hypothesis. It has been argued that our understanding of dividend policy is hindered by the lack of a model that integrates the two...

Purpose – The purpose of this paper is to compare the relative power of operating cash flow and earnings in the prediction of dividends. Design/methodology/approach – A linear mixed effects model is used in terms of selected model fit criteria. Findings – Based on the selected model fit...

Purpose – The purpose of this paper is to examine the impact of the two diversification strategies on firms' propensity to save cash out of cash flow. Design/methodology/approach – The author examines the quarterly data of Compustat's active and research firms from the first quarter of 1999...

Purpose – The purpose of this paper is to investigate whether mutual fund investors can make effective cash flow timing decisions and examine the sensitivity of these decisions to past fund performance using cash flow data at the individual fund level. Design/methodology/approach – This...

Purpose -The aim of this paper is to answer the question: Do discounted cash flows valuation methods provide always the same value? Design/methodology/approach -This paper is a summarized compendium of ten methods including: free cash flow; equity cash flow; capital cash flow; adjusted present...

Purpose – This paper reports an attempt to design a free cash flow version of the cash flow statement. In specific, the paper relates the comprehensive income concept to the definition of free cash flows and shows how free cash flows and residual income can be calculated from the cash flow...

Purpose – The purpose of this paper is to compare companies in a developing country with those of a first-world country. For this purpose South African (SA) companies in the chemical, food and electronic industries are to be evaluated on the hand of cash flow ratios and compared with companies...

Purpose – This paper seeks to examine whether or not divident policy is influenced by the firm's corporate control structure, investigating the relationship between the dynamics of earnings payout and the voting power enjoyed by different types of shareholders. This allows one to test a set of...

Purpose - The paper aims to examine earnings quality during the post-acquisition period. Design/methodology/approach - The paper defines earnings quality as an earnings stream more closely associated with future cash flows from operations. It uses the stock market's reaction at the acquisition...