Information Content of Earnings and Operating Cash Flows: Evidence from the Tehran Stock Exchange

Abstract

The main objective of this study is to evaluate the relative and incremental information content of earnings and operating cash flows in the companies listed in Tehran Stock Exchange. Moreover, the present study investigates the loss effect on the information content of earnings and operating cash flows. For this purpose, we investigate and analyze a sample of 475 firm-years from the companies listed in Tehran Stock Exchange during the years 2006-2010.The results indicate that, the earnings have more information content than operating cash flows in explaining stock returns. In addition, earnings model is preferable in explaining stock returns than operating cash flows model. Also, results show that earnings have positive effect and loss has negative effect on earnings information content and operating cash flows.

The value-relevance of disclosed summarised financial information of listed associates

“…Therefore the Vuong-test (Vuong, 1989) is used to assess the incremental value-relevance of non-nested models, which is based on the unstandardized residuals from the structural portion of a maximum likelihood autoregression in this study. The Vuong-test focuses on the variance in the error terms (Gu, 2007) and is often utilised in value-relevance research when alternative accounting specifications are considered (Dechow, 1994;Ashbough & Olsson, 2002;Pouraghajan et al, 2012 which is the reason that R 2 s should not be compared across models (Gu, 2007).…”

Pengaruh Earnings, Operating Cash Flow Dan Asset Growth Terhadap Stock Return Perusahaan Yang Terdaftar Pada Indeks Lq 45 Untuk Periode 2009-2011

“…Menurut Pouraghajan et al (2012), earnings merupakan sumber evaluasi terkait dengan profitability perusahaan dan berfungsi untuk memprediksi arus kas di masa depan. Selain itu hal ini juga didukung oleh FASB yang dikutip oleh Habib (2008) bahwa earnings merupakan indikator untuk mengukur kemampuan perusahaan dalam mengumpulkan arus kas yang cukup.…”

“…Untuk hasil uji variabel independen earnings dan operating cash flow, hasil penelitian ini tidak sejalan dengan penelitian yang dilakukan oleh Pradhono dan Christiawan (2004) di Indonesia, Pouraghajan et al (2012) di Tehran, Habib (2008 di New Zealand dan Vichitsarawong (2011) di Thailand, yang menyatakan bahwa earnings dan operating cash flow berpengaruh signifikan terhadap stock return perusahaan. Hal yang sama juga terjadi pada hasil pengujian variabel asset growth yang tidak sejalan dengan hasil penelitian oleh oleh Schill (2008) di Amerika Serikat, Shaw, Tong andTing (2008) di Asia Pasifik dan Gray and Johnson (2011) …”

“…Hal ini telah dibuktikan oleh hasil penelitian yang dilakukan Pouraghajan et al (2012) di Tehran dan Habib(2008) di New Zealand. Hasil penelitian tersebut menunjukkan adanya pengaruh earnings dan operating cash flow yang signifikan terhadap stock return.…”

O valor preditivo do resultado líquido contábil, dos accruals e do fluxo de caixa operacional das empresas do mercado segurador brasileiro

“…Penman e Yehuda (2009) 10. Pouraghajan et al (2012) 11. Gumbi (2012) Figura 4 -Pesquisas relacionadas com o retorno de ações.…”