While financial statements are the primary source of information about a firm, they tend to be under earnings management practices, namely to avoid paying tax. Therefore, we aim to examine whether taxes still affect earning persistence in an era of prevalent digital information. For that...

Cash flow statements have a longstanding history as mandated financial statement disclosures, having replaced funds flow statements. The usefulness of such disclosures with respect to one of the main purposes of financial statements - providing information relevant to the assessment of future...

We examine whether the components of accruals and operating cash flows improve the predictive ability of earnings for forecasting future cash flows. We exploit data from Australia where actual cash flow components had been reported. Thus, we avoid data estimation errors and sample self-selection...