The Predictive Content Of Disaggregated Normal Income: An empirical study in the JSX
The main objective of this study is to examine a hypothesis that the predictive content of normal income disaggregated into operating income and nOnoperating income outperforms that of aggregated normal income in predicting future cash flow. To test the hvothesis, linear regression models are develo...
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| Format: | Article NonPeerReviewed |
| Published: |
[Yogyakarta] : Universitas Gadjah Mada
2003
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| Online Access: | https://repository.ugm.ac.id/25746/ http://i-lib.ugm.ac.id/jurnal/download.php?dataId=8746 |
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| Institution: | Universitas Gadjah Mada |
| Summary: | The main objective of this study is to examine a hypothesis that the predictive content of normal income disaggregated into operating income
and nOnoperating income outperforms that of aggregated normal income in predicting future cash flow. To test the hvothesis, linear regression models are developed. The model parameters are estimated based on fifty
five manufacturing firms listed in the Jakarta Stock Exchange (JSX) up to the end of 1997. This study,finds that empirical evidence supports the hypothesis. This evidence supports arguments that. in reporting income
from continuing operations, multiple-step approach is preferred to single-step one.
Keywords: aggregated normal income: cash flow: disaggregated normal income: nonoperating income |
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