PL EN


Preferencje help
Widoczny [Schowaj] Abstrakt
Liczba wyników
2023 | 28 | nr 1 | 83--95
Tytuł artykułu

Properties of Earnings and Cash Flows in Algerian Companies

Autorzy
Warianty tytułu
Języki publikacji
EN
Abstrakty
EN
This paper aims to analyze the properties of earnings compared to cash flows based on persistence and predictive ability as fundamental attributes of relevance. Therefore, we collected financial data of 20 Algerian companies from 2011 to 2020, where 200 observations were employed using the model of Sloan (1996) that was adjusted by sales. According to the results, the earnings of Algerian companies are highly persistent, but their predictability is weak. However, cash flows are not persistent and have no predictive ability. Consequently, earnings quality in Algerian companies is better than the quality of cash flows. Based on our results, users of financial reports in Algerian companies should focus on earnings when making decisions and be cautious when using cash flows. (original abstract)
Rocznik
Tom
28
Numer
Strony
83--95
Opis fizyczny
Twórcy
  • The Université 20 Août 1955, Skikda, Algeria
Bibliografia
  • Adiati, A.K., Rahmawati, R., Bandi, B. (2018). The Impact of Deferred Tax and Accruals on the Earnings Persistence of Companies in the non-Financial Sectors Listed on the Indonesia Stock Exchange. "Journal of Accounting, Finance and Auditing Studies", Vol. 4, No. 3.
  • Ahmadpour, A., Shahsavari, M. (2016). Earnings Management and the Effect of Earnings Quality in Relation to Bankruptcy Level (Firms Listed at the Tehran Stock Exchange). "Iranian Journal of Management Studies", Vol. 9, No. 1, https://doi.org/10.22059/IJMS.2016.55036.
  • An, Y. (2017). Measuring Earnings Quality over Time. "International Journal of Economics and Financial Issues", Vol. 7, No. 3.
  • Ball, R., Watts, R. (1972). Some Time Series Properties of Accounting Income. "Journal of Finance", Vol. 27, No. 3, https://doi.org/10.2307/2978268.
  • Barth, M.E., Cram, D.P., Nelson, K.K. (2001). Accruals and the Prediction of Future Cash Flows. "The Accounting Review", Vol. 76, No. 1.
  • Bissessur, S.W. (2008). Earnings Quality and Earnings Management: The Role of Accounting Accruals. Amsterdam: Thela Thesis.
  • Bowen, R.M., Burgstahler, D., Daley, L.A. (1986). Evidence on the Relationships between Earnings and Various Measures of Cash Flow. "The Accounting Review", Vol. 61, No. 4.
  • Cheng, C.A., Liu, C.Z. (2016). The Unique Effect of Depreciation on Earnings Properties: Persistence and Value Relevance of Earnings. "Journal of Accounting and Finance", Vol. 16, No. 2.
  • Clubb, C., Wu, G. (2014). Earnings Volatility and Earnings Prediction: Analysis and UK Evidence. "Journal of Business Finance and Accounting", Vol. 41, No. 1-2, https://doi.org/10.1111/jbfa.12055.
  • Cupertino, C.M., Galimberti, G.K. (2009). Explaining Earnings Persistence: A Threshold Autoregressive Panel Unit Root Approach, MPRA Paper No. 14237. Germany: Munich Personal RePEc Archive.
  • Dechow, P., Kothari, S.P., Watts, R. (1998). The Relation between Earnings and Cash Flows, "Journal of Accounting & Economics". Vol. 25, No. 2, https://doi.org/10.1016/S0165-4101(98)00020-2.
  • Dechow, P., Ge.W., Schrand, C. (2010). Understanding Earnings Quality: A Review of the Proxies, their Determinants and their Consequences. "Journal of Accounting and Economics", Vol. 50, No. 2-3, https://doi.org/10.1016/j.jacceco.2010.09.001.
  • Dimitropoulos, P.E., Koronios K., (2018). Earnings Persistence of European Football Clubs under UEFA's FFP. "International Journal of Financial Studies", Vol. 6, No. 43, https://doi.org/10.3390/ijfs6020043.
  • Doukakis, L.C., (2010). The Persistence of Earnings and Earnings Components after the Adoption of IFRS. "Managerial Finance", Vol. 36, No. 11, https://doi.org/10.1108/03074351011081286.
  • Ebaid, I.E., (2011). Persistence of Earnings and Earnings Components: Evidence from the Emerging Capital Market of Egypt. "International Journal of Disclosure and Governance", Vol. 8, No. 2, https://doi.org/10.1057/jdg.2010.29.
  • Holthausen, R.W., Watts, R. (2001). The Relevance of the Value-Relevance Literature for Financial Accounting Standard Setting. "Journal of Accounting and Economics", Vol. 31, No. 1-3, https://doi.org/10.1016/S0165-4101(01)00029-5.
  • FASB (1978). SFAC No. 1: Objectives of Financial Reporting by Business Enterprises. USA: FASB.
  • IASB (2018). The Conceptual Framework for Financial Reporting. London: IFRS Foundation.
  • Jelodari, A., Kordshouli, F.A. (2016). A Survey of the Role of Earnings Quality in Accurately Forecasting of Operational and Cash Circulation of Companies Listed on Tehran Stock Exchange. "International Journal of Academic Research in Accounting, Finance and Management Sciences", Vol. 6, No. 4.
  • Kabir, M.H., Laswad, F. (2011). Properties of Net Income and Total Comprehensive Income: New Zealand Evidence. "Accounting Research Journal", Vol. 24, No. 3, https://doi.org/10.1108/10309611111187000.
  • Kamarudin, K.A., Wan Ismail, W.A. (2014). The Risk of Earnings Quality Impairment. "Procedia-Social and Behavioral Sciences", Vol. 145, https://doi.org/10.1016/j.sbspro.2014.06.030.
  • Khuong, N.V., Abdul Rahman, A.A., Thuan, P.Q., Liem, N.T., Anh, L.H.T., Thuy, C.T.M., Ly, H.T.N. (2022). Earnings Management, Board Composition and Earnings Persistence in Emerging Market. "Sustainability", Vol. 14, No. 3, https://doi.org/10.3390/su14031061.
  • Li, V. (2019). The Effect of Real Earnings Management on the Persistence and Informativeness of Earnings. "The British Accounting Review", Vol. 51, No. 4, https://doi.org/10.1016/ j.bar.2019.02.005.
  • Licerán-Gutiérrez, A., Cano-Rodríguez, M. (2019). A Review on the Multidimensional Analysis of Earnings Quality. "Revista de Contabilidad Spanish Accounting Review", Vol. 22, No. 1. https://doi.org/10.6018/rc-sar.22.1.354301.
  • Lipe, R.C. (1986). The Information Contained in the Components of Earnings. "Journal of Accounting Research", Vol. 24, https://doi.org/10.2307/2490728.
  • Lyimo, G.D. (2014). Assessing the Measures of Quality of Earnings: Evidence from India. "European Journal of Accounting Auditing and Finance Research", Vol. 2, No. 6.
  • Potharla, S. (2022). Impact of Real Earnings Management on Earnings Persistence - Evidence from India. "International Journal of Emerging Markets", Vol. ahead-of-print, No. ahead-of-print, https://doi.org/10.1108/IJOEM-05-2020-0576.
  • Senan, N.A. (2019). Ability of Earnings and Cash Flows in Forecasting Future Cash Flows: A Study in the Context of Saudi Arabia. "Academy of Accounting and Financial Studies Journal", Vol. 23, No. 1.
  • Sloan, R.G. (1996). Do Stock Prices Fully Reflect Information in Accruals and Cash Flows about Future Earnings? "The Accounting Review", Vol. 71, No. 3.
  • Amor Tapia, B., Tascón Fernández, M.T., (2011). Accruals, Cash Flows and Earnings in European Privately Held Firms. "Pecunia: Revista de la Facultad de Ciencias Económicas y Empresariales", No. 1.
  • Watts, R., Leftwich, R. (1977). The Time Series of Annual Accounting Earnings. "Journal of Accounting Research", Vol. 15, No. 2, https://doi.org/10.2307/2490352.
Typ dokumentu
Bibliografia
Identyfikatory
Identyfikator YADDA
bwmeta1.element.ekon-element-000171664247

Zgłoszenie zostało wysłane

Zgłoszenie zostało wysłane

Musisz być zalogowany aby pisać komentarze.
JavaScript jest wyłączony w Twojej przeglądarce internetowej. Włącz go, a następnie odśwież stronę, aby móc w pełni z niej korzystać.