The role of accounting accruals for the prediction of future cash flows: evidence from Spain
Fecha
2012Versión
Acceso abierto / Sarbide irekia
Tipo
Artículo / Artikulua
Versión
Versión publicada / Argitaratu den bertsioa
Impacto
|
10.1007/s13209-011-0070-7
Resumen
The aim of this study is to determine whether accruals have information
value beyond that provided by isolated current cash flows for the prediction of future
cash flows. Using a sample of 4,397 Spanish companies (mostly privately held), we
estimate in-sample regressions of future cash flows on isolated current cash flows and
on accrual-based earnings. We then find that the out-of-sample predicti ...
[++]
The aim of this study is to determine whether accruals have information
value beyond that provided by isolated current cash flows for the prediction of future
cash flows. Using a sample of 4,397 Spanish companies (mostly privately held), we
estimate in-sample regressions of future cash flows on isolated current cash flows and
on accrual-based earnings. We then find that the out-of-sample prediction errors provided
by the accrual-based earnings model are significantly lower than those obtained
with the cash flows model. We also regress the decrease in prediction errors brought
about by the addition of accruals on a set of firm-specific circumstances where accounting
manipulation is expected. In all cases the decrease in prediction errors is significantly
affected in the hypothesized direction. [--]
Materias
Cash flows,
Accruals,
Prediction
Editor
Springer
Publicado en
SERIEs, (2012) 3:499–520
Departamento
Universidad Pública de Navarra. Departamento de Gestión de Empresas /
Nafarroako Unibertsitate Publikoa. Enpresen Kudeaketa Saila
Versión del editor
Entidades Financiadoras
This study has been carried out with the Financial support of the
Government of Navarra (Ayudas a proyectos de investigación, convocatoria 2007) and from the Ministry
of Science and Innovation (ECO2010-21627).