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dc.contributor.authorSeng, Dynaen_NZ
dc.date.available2011-04-07T03:22:53Z
dc.date.copyright2006en_NZ
dc.identifier.citationSeng, D. (2006). Earnings versus cash flows as predictors of future cash flows: New Zealand evidence (Accountancy Working Paper Series No. 02_03/06). University of Otago. Retrieved from http://hdl.handle.net/10523/1580en
dc.identifier.urihttp://hdl.handle.net/10523/1580
dc.description.abstractThis study examines the predictive ability of earnings and reported cash flow measures (i.e., Cash Flow From Operations [CFFO], Cash Flow From Investing Activities [CFFIA], and Cash Flow From Financing Activities [CFFFA]) to forecast one- and two-period ahead cash flows during the period 1989-92, using predictive models based on research methodology applied by Bowen, Burgstahler and Daley [1986]. The degree of relationship between earnings and cash flow measures is also examined as a secondary goal of the study. The results provide evidence that CFFO (CFFIA) is a better predictor of one- and two-period ahead CFFO (CFFIA) than is earnings and CFFFA is a better predictor of two-period ahead CFFFA than is earnings. The results of the correlations show that the traditional cash flow measures (i.e., net income plus depreciation and amortisation [NIDPR], and working capital from operations [WCFO]) are highly correlated with earnings suggesting that they both are similar, while the correlations between reported cash flow measures and traditional cash flow measures are low suggesting that the traditional cash flow measures used in prior research are poor proxies for reported cash flow measures which are now provided by the companies' statement of cash flows as required by the New Zealand's Financial Reporting Standard No.10.en_NZ
dc.format.mimetypeapplication/pdf
dc.publisherUniversity of Otagoen_NZ
dc.relation.ispartofseriesAccountancy Working Paper Seriesen_NZ
dc.relation.urihttp://www.business.otago.ac.nz/acty/research/pdf/02_03_06%20Dyna%20Seng.pdfen_NZ
dc.subjectearningsen_NZ
dc.subjectcash flowsen_NZ
dc.subjectcorrelationsen_NZ
dc.subjectpredictive model.en_NZ
dc.subject.lcshHF5601 Accountingen_NZ
dc.titleEarnings versus cash flows as predictors of future cash flows: New Zealand evidenceen_NZ
dc.typeWorking Paperen_NZ
dc.description.versionUnpublisheden_NZ
otago.bitstream.pages18en_NZ
otago.date.accession2006-05-31en_NZ
otago.schoolAccountancy and Business Lawen_NZ
otago.openaccessOpen
otago.place.publicationDunedin, New Zealanden_NZ
dc.identifier.eprints311en_NZ
otago.school.eprintsAccountancy & Business Lawen_NZ
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otago.relation.number02_03/06en_NZ
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