Comparison of Relative Informational Content of Three Section and Five Section Cash-flow Statement in Explaining Future Stock Return of Listed Companies in Tehran Securities and Exchange (TSE)

• Published in: مطالعات تجربی حسابداری مالی
• Main Authors: D foroghi, S.A hashemi, H amiri, S zafari
• Format: Article
• Language: Persian
• Published: Allameh Tabataba'i University Press 2011-12-01
• Subjects: : three section cash flow statement; five section cash flow statement; stock return; restricted regression; wald test
• Online Access: https://qjma.atu.ac.ir/article_1622_af8d695f715a5620fd87b05ac2219b44.pdf

The main purpose of this research is to compare the relative informational content of operating and financing cash flows of three and five section cash flow statement in explaining future stock return. The time range of research is companies cash flow statements between 1382-1388. The population of research is all companies Listed in Tehran Securities and exchange, from which, a sample of 80 Iranian listed firms was chosen. The type of data needed for hypotheses testing is Pooling-Data. Unrestricted and restricted regressions were utilized to test the hypotheses. The statistical methods used consist of adjusted- R² and Wald-test statistic. Findings indicate that both operating and financing cash flow of 3-section cash flow statement have more relative informational content than the operating and financing cash flow of 5-section cash flow statement in predicting future stock return.