Accruals in the prediction of forthcoming cash flows in the companies listed at Pakistan Stock Exchange

This research founds the relative predictabilities of accruals and further disaggregated accruals– trading accruals, non-trading accruals, and financial accruals in the estimation of future cash flows. The research also examines the effect of the global financial crisis on this association between a...

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Main Authors: Rai, I. H., Noor Saadah, Faridah, I., Jaspal, S. J. S. *
Format: Article
Published: Econjournals 2020
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Online Access:http://eprints.sunway.edu.my/1423/
https://econjournals.com/index.php/ijefi
https://doi.org/10.32479/ijefi.10313
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Institution: Sunway University
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spelling my.sunway.eprints.14232020-10-08T01:14:05Z http://eprints.sunway.edu.my/1423/ Accruals in the prediction of forthcoming cash flows in the companies listed at Pakistan Stock Exchange Rai, I. H. Noor Saadah, Faridah, I. Jaspal, S. J. S. * HF5601 Accounting This research founds the relative predictabilities of accruals and further disaggregated accruals– trading accruals, non-trading accruals, and financial accruals in the estimation of future cash flows. The research also examines the effect of the global financial crisis on this association between accruals and future cash flow prediction. The research uses annual data from the period of 1999 to 2018 from 453 firms, which includes 9060 observations. The whole sample period covers data from 1999 to 2018, during the financial crisis period from 2008-2009 and Pre financial crisis period from 1999 to 2007 and Post global financial crisis period 2010 to 2018. To examine the relationship between accruals, disaggregated accruals, and estimation of future cash flows, hypotheses were developed and seasoned through OLS. The outcomes confirm that financial accruals, non-trading accruals, and total aggregated accruals were significant, but trading accruals was not a significant contributor to the estimation of future cash flows. Moreover, there was no significant effect of the global financial crisis on the relationship among disaggregated accruals and forecast of imminent cash flows during Pre and Post and during the global financial crisis period. Econjournals 2020-08-27 Article PeerReviewed Rai, I. H. and Noor Saadah, and Faridah, I. and Jaspal, S. J. S. * (2020) Accruals in the prediction of forthcoming cash flows in the companies listed at Pakistan Stock Exchange. International Journal of Economics and Financial Issues (IJEFI), 10 (5). pp. 130-139. ISSN 2146-4138 https://econjournals.com/index.php/ijefi https://doi.org/10.32479/ijefi.10313
institution Sunway University
building Sunway Campus Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Sunway University
content_source Sunway Institutional Repository
url_provider http://eprints.sunway.edu.my/
topic HF5601 Accounting
spellingShingle HF5601 Accounting
Rai, I. H.
Noor Saadah,
Faridah, I.
Jaspal, S. J. S. *
Accruals in the prediction of forthcoming cash flows in the companies listed at Pakistan Stock Exchange
description This research founds the relative predictabilities of accruals and further disaggregated accruals– trading accruals, non-trading accruals, and financial accruals in the estimation of future cash flows. The research also examines the effect of the global financial crisis on this association between accruals and future cash flow prediction. The research uses annual data from the period of 1999 to 2018 from 453 firms, which includes 9060 observations. The whole sample period covers data from 1999 to 2018, during the financial crisis period from 2008-2009 and Pre financial crisis period from 1999 to 2007 and Post global financial crisis period 2010 to 2018. To examine the relationship between accruals, disaggregated accruals, and estimation of future cash flows, hypotheses were developed and seasoned through OLS. The outcomes confirm that financial accruals, non-trading accruals, and total aggregated accruals were significant, but trading accruals was not a significant contributor to the estimation of future cash flows. Moreover, there was no significant effect of the global financial crisis on the relationship among disaggregated accruals and forecast of imminent cash flows during Pre and Post and during the global financial crisis period.
format Article
author Rai, I. H.
Noor Saadah,
Faridah, I.
Jaspal, S. J. S. *
author_facet Rai, I. H.
Noor Saadah,
Faridah, I.
Jaspal, S. J. S. *
author_sort Rai, I. H.
title Accruals in the prediction of forthcoming cash flows in the companies listed at Pakistan Stock Exchange
title_short Accruals in the prediction of forthcoming cash flows in the companies listed at Pakistan Stock Exchange
title_full Accruals in the prediction of forthcoming cash flows in the companies listed at Pakistan Stock Exchange
title_fullStr Accruals in the prediction of forthcoming cash flows in the companies listed at Pakistan Stock Exchange
title_full_unstemmed Accruals in the prediction of forthcoming cash flows in the companies listed at Pakistan Stock Exchange
title_sort accruals in the prediction of forthcoming cash flows in the companies listed at pakistan stock exchange
publisher Econjournals
publishDate 2020
url http://eprints.sunway.edu.my/1423/
https://econjournals.com/index.php/ijefi
https://doi.org/10.32479/ijefi.10313
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