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Do Earnings Reported Under IFRS Improve the Prediction of Future Cash Flows? Evidence from European Banks

Palea, Vera - 2019

This paper examines the relative costs and benefits of International Financial Reporting Standards (IFRS) adoption in the European Union by testing the ability of earnings computed under IFRS to predict future cash flows. The study considers the contribution of net income, comprehensive income...

Persistent link: https://www.econbiz.de/10012903767

FASB was Right : Earnings Beat Cash Flows when Predicting Future Cash Flows

Ball, Ray - 2020

Do accruals-based accounting earnings provide better information to investors about future operating cash flows than operating cash flows themselves, as predicted by FASB's conceptual framework? The most recent evidence (Nallareddy et al., 2020) is that operating cash flows, measured correctly...

Persistent link: https://www.econbiz.de/10012823531

A Modified Dechow and Dichev (2002) Model with Cash Flow Forecasts

Shi, Linna - 2016

We propose a modification to the Dechow and Dichev (2002) model (DD hereafter) by replacing realized next-period cash flows with forecasted future cash flows. We first theorize the relation between the modified- and original DD model and that between abnormal accruals from the modified DD model...

Persistent link: https://www.econbiz.de/10013007971

Cash-Flow or Return Predictability at Long Horizons? The Case of Earnings Yield

Maio, Paulo F. - 2020

We examine the predictive ability of the aggregate earnings yield for market returns and earnings growth by estimating variance decompositions at multiple horizons. Based on weighted long-horizon regressions, we find that most of the variation in the earnings yield is due to return...

Persistent link: https://www.econbiz.de/10012857172

Bond Analysts' Forecasts on Cash Flows and Earnings

Kim, Robert - 2015

(earnings) forecasts. Finally, we show that bond investors' reaction to bond analysts' cash flow forecast revision is greater … than that to bond analysts' earnings forecast and that bond market reacts only to bond analysts' forecast revisions but not … to equity analysts' forecast revisions. This manifests bond investors' stronger demand for reliable information on future …

Persistent link: https://www.econbiz.de/10013019557

Do Analysts’ Cash Flow Forecasts Improve the Accuracy of Their Target Prices?

Hashim, Noor - 2016

Current evidence on the sophistication of analysts' cash flow forecasts is ambiguous. For example, Call et al. (2009) show that issuing cash flow forecasts has important benefits for analysts' earnings forecasts, while Givoly et al. (2009) question the validity of this result, arguing that...

Persistent link: https://www.econbiz.de/10012988560

Do Analysts’ Cash Flow Forecasts Improve the Accuracy of Their Target Prices?

Hashim, Noor - 2016

Persistent link: https://www.econbiz.de/10012988890

The predictive ability of quarterly financial statements

Zhou, Hui; Maneesoonthorn, Worapree; Chen, Xiangjin B. - In: International Journal of Financial Studies : open … 9 (2021) 3, pp. 1-17

A fundamental role of financial reporting is to provide information useful in forecasting future cash flows. Applying up-to-date time series modelling techniques, this study provides direct evidence on the usefulness of quarterly data in predicting future operating cash flows. Moreover, we show...

Persistent link: https://www.econbiz.de/10012631876

The Effect of Lender Expectations Management on Mandatory Management Forecasts : Evidence from Cash Flow Forecasts by Early-Stage Mining Firms

Ferguson, Andrew - 2020

The objective of this study is to investigate whether management forecasts characteristics change around key debt financing events to meet expectations of debt holders. Examining a large sample of mandatory management forecasts of quarterly expenditure disclosed by early-stage mining companies,...

Persistent link: https://www.econbiz.de/10012849354

Further evidence on the ability of FIFO and LIFO earnings to predict operating cash flows : an industry specific analysis

Murdoch, Brock; Dehning, Bruce; Krause, Paul - In: The journal of applied business research 29 (2013) 4, pp. 1231-1241

Persistent link: https://www.econbiz.de/10009777586