Do Direct Cash Flow Disclosures Help Predict Future Operating Cash Flows and Earnings?

• Main Authors: Orpurt, Steven Francis, Zang, Yoonseok
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2007
• 主題: Direct Cash Flows; statement of cash flows; direct method; forecasting future cash flows and earnings; future earnings response coefficient (FERC); stock price informativeness; Accounting; Corporate Finance
• 在線閱讀: https://ink.library.smu.edu.sg/soa_research/167; https://ink.library.smu.edu.sg/context/soa_research/article/1166/viewcontent/OZ_DCF1_080207.pdf

Motivated by recent FASB, IASB and CFA Institute comments, we extend the scant literature on direct method cash flow disclosures by exploring their predictive ability. A primary stated purpose of the direct method is to better forecast future operating performance. To test this purpose, we use a FER...