Accruals and the prediction of future cash flows

By Ibrahim El-Sayed Ebaid. 2011

362 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/33dc45e43a541082773629e2abb4f7124e849689

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Daniel A. Cohen
2. Leif Atle Beisland
3. Karthik Balakrishnan
4. Christopher S. Armstrong
5. Paolo Saona
6. María Alvarado
7. Laura Muro
8. G. Iatridis

In Strategy and Management

1. Leif Atle Beisland
2. Daniel A. Cohen
3. María Alvarado
4. Laura Muro
5. Paolo Saona
6. Christopher S. Armstrong
7. G. Iatridis
8. Karthik Balakrishnan

Citations in the corpus

• A Review of the Value Relevance Literature (2009, background): “Barth, Cram and Nelson [30] report that accruals items are both significantly predictive of future cash flow and significantly related to stock returns [see also 79, 91].”
• Corporate governance and the information environment: Evidence from state antitakeover laws ☆ (2012, methodology): “Antitakeover laws and analyst behavior We address this concern by using Barth et al.’s (2001) measure of earnings quality, EQ, as an alternative proxy for financial statement informativeness.”
• International Financial Reporting Standards and the quality of financial statement information (2010, positive): “The findings are consistentwith Barth et al. (2005), Tendeloo and Vanstraelen (2005) and Hung and Subramanyam (2007), and indicate that H2 holds, suggesting that IFRS adoption is likely to lead to accounting measures that exhibit higher value relevance.”
• Comparing the Value Relevance, Predictive Value, and Persistence of Other Comprehensive Income and Special Items (2011, background): “…have shown that different components of earnings have different predictive value (Finger 1994; Sloan 1996; Fairfield et al. 1996; Dechow and Ge 2006), and that disaggregating earnings into components enhances the prediction of future performance (Fairfield et al. 1996; Barth et al. 2001b).”
• The Effect of Research and Development (R&D) Inputs and Outputs on the Relation between the Uncertainty of Future Operating Performance and R&D Expenditures (2011, background): “Studies focusing on the prediction of future earnings or cash flow performance include Finger (1994) and Barth, Cram, and Nelson (2001).”
• Are Sin Stocks Paying the Price for Accounting Sins? (2011, background): “(5) based on Dechow, Kothari, and Watts (1998); Barth, Cram, and Nelson (2001); and Dechow and Dichev (2002) show that sin firms have higher levels of earnings quality than the SRC match and value firm match samples (see Table 6, Panel A); however, the results for value firm match are slightly…”
• How do the ownership structure and board of directors' features impact earnings management? The Spanish case (2020, background): “Nevertheless, there might be a discretion-ary use of the managerial capacity to manipulate or redirect the information reported in the financial statements (Barth, Cram, & Nelson, 2001), which is called discretionary accruals and is perhaps the most common way to manage earnings.”
• Fair value accounting: information or confusion for financial markets? (2014, neutral): “In that regard, there is evidence that accrual earnings are a useful basis to predict future cash flows, thus indicating the critical role of the income statement in financial markets (Barth et al., 2001b).”