Font Size: a A A

Research On The Serviceability Of The Cash Flow Statement For Investor's Decision

Posted on:2003-07-19Degree:MasterType:Thesis
Country:ChinaCandidate:Y Z LiuFull Text:PDF
GTID:2156360092491289Subject:Accounting
Abstract/Summary:PDF Full Text Request
With the complication in the environment of corporation and market, the accounting standard needs press more and more close to the market. But the related information presented in profit-and-lost statement cannot provide sufficient corporation financial information to meet the need of investor and decision-maker. And these users hold much more eager demand for cash flow information. So whether the cash flow statement possesses information content? Does the statement bear reference value to the investor or decision-maker? To solve these questions, the paper will further the research on the following aspects in five chapters.1. Does the information disclosed in the cash flow statement of Taiwan listed corporation have related information content?2. Whether the information disclosed in the cash flow statement of inland listed corporation (B-stock) offer the related information content?3. The discrepancy of the related information content in cash flow statement between Taiwan and inland.The research combines both the qualitative and quantitative analysis methods to explore the above issues, and the result indicates that the investor for sure benefit from the cash flow statement of the listed corporation in inland (B-stock) and Taiwan. The outcomes are listed as follow:1. Both the cash flow statement in Taiwan and inland listed corporation contain related information content, and the information disclosed in the inland ones hold stronger capacity in interpreting the cumulative abnormal return (CAR) than that of the Taiwan listed company.2. After considering the corporation's management performance, in the cash flow statement of the Taiwan listed corporation (10 years), the investment andfinancing section state that there is a distinguished relation between the investment's net cash flow and cumulative abnormal return. Whereas the same items in that of the Taiwan listed corporation (3 years) contain no outstanding connection as the inland ones do.3. Considering individual corporation's management performance in the investment section of the Taiwan listed corporation's cash flow statement, the asset investment of the company which has a higher rate of return, have a positive bearing with the cumulative abnormal return of the share price comparing with the ones which have a lower rate. While the inland ones bear a negative rapport.The paper will go deep in the reasoning process with regard to these outcomes. On this foundation it also makes suggestions to the investor and decision-maker on how to comprehend and utilize the cash flow statement.
Keywords/Search Tags:Cash Flow Statement, Investment Decision, Related, Information Content, Cumulative Abnormal Return
PDF Full Text Request
Related items