The Relation between Operating Cash Flows based on the Five-section Model and Return on Investment based on the Four-section Model of Cash Flow Statement with Earnings Persistence

Document Type : Research Paper

Authors

Abstract

The aim of this study is to investigate the relation between operating cash flows based on five-section model and return on investment based on four-section model of cash flow statements with the earnings persistence. The sample consists of 171 firms listed in Tehran Stock Exchange during a 6 years period from 2008 to 2014. Data analysis is performed through Eviews software, consolidated structure (panel), generalized least squares method (GLS), weighted cross section framework, and using time fixed effects. The results show that both operating cash flows based on five-section model and returns on investment based on four-section model have positive significant effects on earning persistence. As a comparative result, return on investment based on four-section model has more effects on earning persistence than operating cash flows based on five-section model. According to the results, financial decision makers and analysts can more correctly test earning persistence of firms by simple changes and simply arranging some elements and converting operating cash flows based on five-section model into return on investment based on four-section model.

Keywords

Main Subjects

References

اعتمادی، حسین؛ تاری وردی، یداله. (1385). تأثیر نحوه ی ارائه ی صورت جریان وجوه نقد بر قضاوت‌های سرمایه گذاران حرفه ای. بررسی‌های حسابداری وحسابرسی، دوره سیزدهم (شماره 45)، 88-69.
انواری رستمی، علی اصغر؛ تاری وردی، یداله. (1389). نحوه ی ارائه ی برتر صورت جریان وجوه نقد ازدیدگاه گروههای مختلف در ایران. تحقیقات حسابداری وحسابرسی، دوره دوم (شماره 7)، 88-69.
آقا کاظم شیرازی، سمانه. (1391). بررسی رابطه جریان‌های نقدی عملیاتی مدل پنج بخشی و بازده سرمایه گذاریهای مدل چهار بخشی با کیفیت افشا. پایان نامه کارشناسی ارشد حسابداری، دانشکده اقتصاد و حسابداری، دانشگاه آزاد اسلامی واحد تهران مرکزی.
آقاپور جویباری، صادق. (1392). تأثیر اجزای مدل‌های سه، چهار و پنج بخشی صورت جریان وجوه نقد بر مدیریت سود. پایان نامه کارشناسی ارشد حسابداری، دانشکده اقتصاد و حسابداری، دانشگاه آزاد اسلامی واحد تهران مرکزی.
بنی مهد، بهمن؛ اللهیاری، غلامحسین. (1393). رابطه بین اقلام غیر عادی حسابهای دریافتنی وکیفیت سود. پژوهش‌های تجربی حسابداری، دوره سوم (شماره 12)، 60-47.
پور حیدری، امید؛ افلاطونی، عباس و نیکبخت، زهرا. (1389)، بررسی توانایی وجوه نقد حاصل از فعالیتهای عملیاتی در پیش بینی وجوه نقد آتی. فصلنامه مطالعات حسابداری، شماره 26، 45-29.
تاری وردی، یداله. (1385). تأثیر نحوه ارائه صورت جریان وجوه نقد بر قضاوت‌ها و تصمیم گیری­های سرمایه­گذاران حرفه­ای: آزمایش تجربی و دیدگاه­های مختلف. رساله ی دکتری حسابداری، دانشکده علوم انسانی، دانشگاه تربیت مدرس.
کمیته فنی سازمان حسابرسی، اصول و ضوابط حسابداری و حسابرسی (1388)، استاندارد­های حسابداری، سازمان حسابرسی. نشریه شماره 160.
مشایخی، بیتا؛ صفری، مریم. (1385). وجه نقد ناشی از عملیات و مدیریت سود در شرکت‌های پذیرفته شده در بورس اوراق بهادار تهران. بررسی‌های حسابداری و حسابرسی، دوره سیزدهم (شماره 2)، 54-35.
نمازی، محمد؛ رضایی، حمیدرضا. (1391). تأثیر نرخ تورم بر کیفیت سود شرکتهای پذیرفته شده در بورس اوراق بهادار تهران. پژوهش­های تجربی حسابداری، دوره دوم (شماره 5)، 91-67.
AghaKazemShirazi, s. (2013). The relationship between Cash flows from operating activities in five-section and return on investment in four-section models of statement of cash flows with the quality of disclosure. MA Dissertation, Islamic Azad University, Central Tehran Branch. (In Persian).
Anvari rostami, A. & Tariverdi, Y. (2011). The best way to providing the statement of cash flows from the Viewpoint of different users, accountingand auditing research, 2 (7) , 100-109. (In Persian).
BaniMahd,B.؛ Allahyari,G. (2014). The Relationship Between Abnormal Accounts Receivable Items and Earning Quality, Empirical Accounting Research,3 (12) , 47 - 60. (In Persian).
Dechow, P & Dichev, I. (2002). The quality of accruals and earnings: the role of accrual estimation errors. The Accounting Review,77, 35-59.
Etemadi, H.؛ Tariverdi, Y. (2007). The effect of providing the statement of cash flows from the investor judgments. The Iranian accounting and auditing review,13 (45) , 69-88. (In Persian).
 
Holie, D.؛ Nicholls, C.؛ Zhao, Q (2011). Effects of cash flow statement reclassifications pursuant to the SEC’s one-time allowance. Journal of accont. Public Policy, 30, 570-588.
Lorek, K. S.؛ Willinger, G. L. (2009). New Evidence Pertaining of Operating Cash Flows. Reviw of Quantitative Finance and Accounting, 32 (1) , 1-15.
Mashaekhi, s.؛ safari, M. (2006). operating cash flow. and earning managementof listed companies in Tehran Stock Exchange. journal of accounting and auditing reviews, 13 (2) , 35-54. (In Persian).
Namazi, M.؛ Rezai,V (2012). Influence of Inflation Rate on the Quality of Earnings of Companies Accepted in Tehran Stock Exchange. Empirical Accounting Research, 2 (5) , 67 – 91. (In Persian).
     Financial Accounting Standard Board FASB. (1978). Statements of financial accounting concepts, No. 1, Objectives of financial reporting by business enterprises.
Francis, J.؛ LaFond, R.؛ Olsson, P.؛ Schipper, K. (2005). The market pricing of accruals quality. Journal of Accounting and Economics, 39, 295–32
Francis. R. N (2010). The Relative Informational Content of Operating and Financing Cash-Flow in the Proposed Cash-Flow Statement. Journal of Accounting and Finance, 50 (2) , 829-851.
Freeman, R. N.؛ Ohlson, J. A.؛ Penman, S. H. (1982). Book Rate-of-Return and Prediction of Earnings Changes: An Empirical Investigation. Journal of Accounting Research, 20 (2) , 639-653.
Jones, J. (1991). Earnings Management during Import Relief Investigations. Journal of Accounting Research. 29 (2) , 193-228.
Poor Heidari, O.؛ Aflatooni,A.؛ Nikbakht,z (2010) , "Reviewing the ability of cash from operating activities in predicting future cash flows", Journal of Accounting Studies, 26 (2) , 29 – 45. (In Persian).
Sloan. (1996). Do stock prices fully reflect information in accruals and cash flows future earnings? The Accounting Review, 71 (3) , 289-315.
Schipper, K.؛ Vincent, L. (2003). Earning Quality. Accounting Horizons, 17 (2) , 97-110
Tariverdi , Y (2006). The Effect of Presentation of the Cash Flow Facility on Judgments and Decisions of Professional Investors: Emprical experimental and Different Perspectives, Ph. D. Accounting Paper, Faculty of Humanities, Tarbiat Modares University
Technical committee of audit organization. Journal 160, Accounting standards. 20th edition, Audit Organization Publications. (In Persian).
Yoon, S. S.؛ Miller, G. A. (2002). Cash from operations and earnings management in Korea, the International journal ofaccounting, 37, 395-412.
Aghapoorgooybary,s. (2013). The effect of components of a 3, 4 ,5 parts model of cash flow statement on Earning management infirms enlisted in Tehran stock exchange. MA Dissertation, Islamic Azad University, Central Tehran Branch. (In Persian).
Empirical Research in Accounting
Volume 7, Issue 4 - Serial Number 26
February 2017
Pages 191-212

Files

History

  • Receive Date: 25 February 2016
  • Revise Date: 22 December 2017
  • Accept Date: 09 January 2018

Share

How to cite

Statistics