Empirical Studies in Financial Accounting

Abstract Investigating the Relation Between Accruals and Operating Cash Flows and Effective Factors on this Relation can be useful for shareholders and capital market analysts. The purpose of this study is to investigate the Relation Between Accruals and Operating Cash Flows and Effective Timing and Economic Factors on this Relation. To do so, data of 107 stocks listed in Tehran Stock Exchange in a period of 11 years during 2005 to 2015 were analyzed. First of all, with utilization of times-series regression, the relationship between accruals and cash flows over time were examined. Afterwards, Effective Timing and Economic Factors that could affect this relation were considered utilizing Time-Series Regressions. The results indicate a significant negative relationship between Accruals and Operating Cash Flows showing drops from about -0/997 in 2005 to -0/347 in 2015. Furthermore, out of five potential factors, three of which including Timing-Related Cash Flow Shocks, increases in non-timing-related accrual recognition, as proxied by one-time and non-operating items and the growth of intangible-intensive industries play a role in the majority of the overall decline. In other words, the growth in the frequency and the magnitude of these items has given rise to a decrease in the negative accrual–cash flow relation and operational Cash Flow Shocks throughout the project.

Abstract In this study, the effect of audit quality on the forecasting accuracy of future
operating cash flows of firms listed in the Tehran Stock Exchange has been
investigated. Audit quality has been measured with auditor size, auditor
industry specialization and auditor tenure. Similar to some previous
researches done in this outline, forecasting accuracy of future operating cash
flows have been estimated with using model Barth et al (2001). The results
of review firms 97 in the years 2007 to 2014 show that size of audit firm and
auditor industry specialization have significant positive relationship at the
forecasting accuracy of future operating cash flows, and increase forecasting
accuracy. while there is a significant negative relationship between
forecasting accuracy of future operating cash flows and auditor tenure. These
findings suggest that audit quality can influence the quality of accounting
information and therefore effected over forecasting accuracy of future
operating cash flows.

Abstract In this study, the effect of audit quality on the forecasting accuracy of future operating cash flows among between firms listed in the Tehran Stock Exchange has been investigated. Audit quality has been measured with auditor size, auditor industry specialization and auditor tenure.Similar to some previous researches done in this outline, forecasting accuracy of future operating cash flows have been estimated with using model Barth et al (2001). The results of review firms 97 in the years 2007 to 2014 show that size of audit firm and auditor industry specialization have significant positive relationship at the forecasting accuracy of future operating cash flows, so caused increase its .while there is a significant negative relationship between forecasting accuracy of future operating cash flows and auditor tenure. These findings suggest that audit quality can influence the quality of accounting information and therefore it is effected over forecasting accuracy of future operating cash flows.

Abstract Various studies (wolk & et al, 2004, Beaver & Demski ,1979) indicate that changes in reported accounting earnings lead to changes in stock prices. Since current accounting earnings is useful in predicting future earnings , So the current earning due to the ability to predict future earnings and future dividends, have information content In such a structure, the accounting profit indirectly have an impact on the valuation of stocks. The purpose of this study is to compare the value relevance of the total amount operating profit and cash and non-cash components of earning of the listed companies on Tehran Stock Exchange .The meaning of the value relevance is the relation of accounting variables such as earnings and its components with the company's stock value. In order to achieve the objective we selected, 91 companies from the statistical population that had necessary information for the 5 years period of the research (2007-2011). To examine the research hypotheses, panel data has been employed. For the test of research model significance t and F statistics were used. The findings of the study indicate that the value relevance of cash and accrual components of earnings compared with the overall profit is higher. According to research findings, as well as the cash component of earnings than the accrual component of earnings is more associated with the value of the firm. In addition, the value relevance of current accruals is greater than the value of non- current accruals.

Abstract The present study investigates the prediction earning models and compares the models based on absolute forecast errors. For analyzing the data 232 listed firms Tehran stock exchange (TSE) are used during 1380-1387. Comparing the models is done at the level of the all selected firms and at the level of the industries. Using panel data analyses, the results show that disaggregation earning has more ability to predict future earnings than aggregation earning. The results also show that there is a significant relationship between operating cash flows components - cash receipts from customers, cash paid to suppliers and cash paid for operating expenses -and future earnings. It means that these items have ability for predicting future earnings. Also the results indicate that there is a significant relationship between accruals components -accounts receivables, prepayments, inventory, depreciation and amortization, accounts payable advanced receipts, other accounts receivables, other accounts payable and other accruals and future earnings. As a result, these items have ability for predicting future earnings.