Comparing the role of accruals and operating cash flows on users' decisions on financial statements: A case study of Tehran Stock Exchange

One of the major challenges facing all of individuals and organizations is decision-making based on the information. The issues of priority about cash flows and accruals data in decision-making process for different groups of financial statement users include investors, creditors, shareholders, dire...

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Main Authors: Mohsen Sohrabi Araghi, Sharifaldin Attari
Format: Article
Language:English
Published: Growing Science 2013-01-01
Series:Management Science Letters
Subjects:
Online Access:http://www.growingscience.com/msl/Vol3/msl_2012_296.pdf
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spelling doaj-ae56fbc05c724256adcdf5b6002bf6272020-11-25T00:13:07ZengGrowing ScienceManagement Science Letters1923-93351923-93432013-01-013197106Comparing the role of accruals and operating cash flows on users' decisions on financial statements: A case study of Tehran Stock ExchangeMohsen Sohrabi AraghiSharifaldin AttariOne of the major challenges facing all of individuals and organizations is decision-making based on the information. The issues of priority about cash flows and accruals data in decision-making process for different groups of financial statement users include investors, creditors, shareholders, directors, etc. one of the issues that has been controversial between accrual and cash accounting advocators for a long time. In this study, we survey the role of accruals and operating cash flows in decisions of financial statement users in listed companies on Tehran stock exchange, information content of operating cash flows and accruals in the connection with decision-making criteria used by different groups using financial statement has been examined. In this study, we use eliminating sampling and implied limitations and the sample size includes 203 companies to examine six hypotheses. The results of this research indicate that there is a significant different between accruals and operating cash flows information content in relation to various decision-making criteria but utilizing accruals and operating cash flows supplementary and simultaneously in profit frame depending on the selection criteria may or may not be include information value-added.http://www.growingscience.com/msl/Vol3/msl_2012_296.pdfAccrualsInformation contentOperating cash flowsFinancial ratiosProfitJones modelInformation value-added
collection DOAJ
language English
format Article
sources DOAJ
author Mohsen Sohrabi Araghi
Sharifaldin Attari
spellingShingle Mohsen Sohrabi Araghi
Sharifaldin Attari
Comparing the role of accruals and operating cash flows on users' decisions on financial statements: A case study of Tehran Stock Exchange
Management Science Letters
Accruals
Information content
Operating cash flows
Financial ratios
Profit
Jones model
Information value-added
author_facet Mohsen Sohrabi Araghi
Sharifaldin Attari
author_sort Mohsen Sohrabi Araghi
title Comparing the role of accruals and operating cash flows on users' decisions on financial statements: A case study of Tehran Stock Exchange
title_short Comparing the role of accruals and operating cash flows on users' decisions on financial statements: A case study of Tehran Stock Exchange
title_full Comparing the role of accruals and operating cash flows on users' decisions on financial statements: A case study of Tehran Stock Exchange
title_fullStr Comparing the role of accruals and operating cash flows on users' decisions on financial statements: A case study of Tehran Stock Exchange
title_full_unstemmed Comparing the role of accruals and operating cash flows on users' decisions on financial statements: A case study of Tehran Stock Exchange
title_sort comparing the role of accruals and operating cash flows on users' decisions on financial statements: a case study of tehran stock exchange
publisher Growing Science
series Management Science Letters
issn 1923-9335
1923-9343
publishDate 2013-01-01
description One of the major challenges facing all of individuals and organizations is decision-making based on the information. The issues of priority about cash flows and accruals data in decision-making process for different groups of financial statement users include investors, creditors, shareholders, directors, etc. one of the issues that has been controversial between accrual and cash accounting advocators for a long time. In this study, we survey the role of accruals and operating cash flows in decisions of financial statement users in listed companies on Tehran stock exchange, information content of operating cash flows and accruals in the connection with decision-making criteria used by different groups using financial statement has been examined. In this study, we use eliminating sampling and implied limitations and the sample size includes 203 companies to examine six hypotheses. The results of this research indicate that there is a significant different between accruals and operating cash flows information content in relation to various decision-making criteria but utilizing accruals and operating cash flows supplementary and simultaneously in profit frame depending on the selection criteria may or may not be include information value-added.
topic Accruals
Information content
Operating cash flows
Financial ratios
Profit
Jones model
Information value-added
url http://www.growingscience.com/msl/Vol3/msl_2012_296.pdf
work_keys_str_mv AT mohsensohrabiaraghi comparingtheroleofaccrualsandoperatingcashflowsonusersdecisionsonfinancialstatementsacasestudyoftehranstockexchange
AT sharifaldinattari comparingtheroleofaccrualsandoperatingcashflowsonusersdecisionsonfinancialstatementsacasestudyoftehranstockexchange
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