Asian Journal of Research in Banking and Finance
Year : 2015, Volume : 5, Issue : 1
First page : ( 9) Last page : ( 18)
Online ISSN : 2249-7323.
Article DOI : 10.5958/2249-7323.2015.00002.4

Investigation of Information Content of Accrual and Cash Accounting Measures: Evidence from Tehran Stock Exchange (TSE)

Jamshidi Ali, Goodarzi Kazem, Namvar Ehsan

Department of Accounting, Nourabad Mamasani Branch, Lslamic Azad University, Nourabad Mamasani, Iran

Online published on 7 January, 2015.

Abstract

Regarding the role accounting earnings (accruals) and operating cash flow as a basis for decision making and forecasting stakeholders, in this study, on the one hand the relevance of accounting earnings and operating cash flows and the other hand aims to examine the content of incremental and relative in accrual and cash items have been studied. In this research, the statistical populations are the accepted firms in the Tehran Stock Exchange (TSE), which are selected based on considered preconditions (76 firms are selected over 2004 to 2013). Regression method of analysis and Eviews was employed to analyze the data. The results indicate that accruals and cash significant relationship with stock return. Also the incremental and relative information content of accruals relative to cash items and has the most

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Keywords

Operating Earnings, Operating Cash Flows, Return on Equity, Information Content.

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