An investigation on how to estimate future cash flows: Evidence from Tehran Stock Exchange
This paper presents an empirical investigation to predict future cash flows using present cash flow and accruals using the information of 96 selected firms listed on Tehran Stock Exchange over the period 2007-2011. The proposed study uses linear regression techniques to forecast future cash flow and...
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| Format: | Article |
| Language: | English |
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Growing Science
2014-03-01
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| Series: | Management Science Letters |
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| Online Access: | http://www.growingscience.com/msl/Vol4/msl_2014_17.pdf |
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| _version_ | 1849702093347094528 |
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| author | Roghayeh Ahmdi Panah Banad Koki Iman Jokar |
| author_facet | Roghayeh Ahmdi Panah Banad Koki Iman Jokar |
| author_sort | Roghayeh Ahmdi Panah Banad Koki |
| collection | DOAJ |
| description | This paper presents an empirical investigation to predict future cash flows using present cash flow and accruals using the information of 96 selected firms listed on Tehran Stock Exchange over the period 2007-2011. The proposed study uses linear regression techniques to forecast future cash flow and the results indicate that cash flow and accruals together could provide more power to forecast cash flow. In addition, accrual provides future cash flow better than cash flow. The survey also performs an investigation on discretionary accrual and finds that the firms with higher accruals maintain lower return compared with firms with lower return. This means there is a clear evidence of discretionary accruals on Tehran Stock Exchange. |
| format | Article |
| id | doaj-art-2565a00d790340c49d5342b482a9cdb5 |
| institution | DOAJ |
| issn | 1923-2934 1923-9343 |
| language | English |
| publishDate | 2014-03-01 |
| publisher | Growing Science |
| record_format | Article |
| series | Management Science Letters |
| spelling | doaj-art-2565a00d790340c49d5342b482a9cdb52025-08-20T03:17:46ZengGrowing ScienceManagement Science Letters1923-29341923-93432014-03-014350350610.5267/j.msl.2014.1.017An investigation on how to estimate future cash flows: Evidence from Tehran Stock ExchangeRoghayeh Ahmdi Panah Banad KokiIman JokarThis paper presents an empirical investigation to predict future cash flows using present cash flow and accruals using the information of 96 selected firms listed on Tehran Stock Exchange over the period 2007-2011. The proposed study uses linear regression techniques to forecast future cash flow and the results indicate that cash flow and accruals together could provide more power to forecast cash flow. In addition, accrual provides future cash flow better than cash flow. The survey also performs an investigation on discretionary accrual and finds that the firms with higher accruals maintain lower return compared with firms with lower return. This means there is a clear evidence of discretionary accruals on Tehran Stock Exchange.http://www.growingscience.com/msl/Vol4/msl_2014_17.pdfDiscretionary AccrualsTehran Stock ExchangeFuture Cash flow |
| spellingShingle | Roghayeh Ahmdi Panah Banad Koki Iman Jokar An investigation on how to estimate future cash flows: Evidence from Tehran Stock Exchange Management Science Letters Discretionary Accruals Tehran Stock Exchange Future Cash flow |
| title | An investigation on how to estimate future cash flows: Evidence from Tehran Stock Exchange |
| title_full | An investigation on how to estimate future cash flows: Evidence from Tehran Stock Exchange |
| title_fullStr | An investigation on how to estimate future cash flows: Evidence from Tehran Stock Exchange |
| title_full_unstemmed | An investigation on how to estimate future cash flows: Evidence from Tehran Stock Exchange |
| title_short | An investigation on how to estimate future cash flows: Evidence from Tehran Stock Exchange |
| title_sort | investigation on how to estimate future cash flows evidence from tehran stock exchange |
| topic | Discretionary Accruals Tehran Stock Exchange Future Cash flow |
| url | http://www.growingscience.com/msl/Vol4/msl_2014_17.pdf |
| work_keys_str_mv | AT roghayehahmdipanahbanadkoki aninvestigationonhowtoestimatefuturecashflowsevidencefromtehranstockexchange AT imanjokar aninvestigationonhowtoestimatefuturecashflowsevidencefromtehranstockexchange AT roghayehahmdipanahbanadkoki investigationonhowtoestimatefuturecashflowsevidencefromtehranstockexchange AT imanjokar investigationonhowtoestimatefuturecashflowsevidencefromtehranstockexchange |