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An Empirical Study On The Information Content Of Accounting Earnings Versus Cash Flows

Posted on:2007-07-28Degree:MasterType:Thesis
Country:ChinaCandidate:H T MaoFull Text:PDF
GTID:2189360185458171Subject:Accounting
Abstract/Summary:PDF Full Text Request
Under the information perspective, the information which can change people's anticipation and induce the market's reaction is useful; and all the useful information should be disclosed immediately and accurately. The aim of the security observer's making rules is to help the investors catch information, make right judgment about the value of securities and reduce the asymmetry of information. So, we can examine the reaction of market to the information to know whether the information is useful, whether the rules can achieve its aims.There is a lot of information in modern society and accounting earnings are the most sensitive information and people would like to pay attention to them. The accounting earnings are most important and full of information content in financial statement. However, there is a lot of difference between GAAP and the real economical environment, information of the earnings and Balance Sheet exposed by the firms and based on the accrual basis accounting could not satisfy the requirement of how to evaluate the outstanding achievement of the company increasingly. So the cash flow statement based on cash basis must replace the old financial statement which was working capital statement sooner or later. The Cash flow statement not only brings the new accounting information style for capital market but also widens the horizon of research academe. An important conclusion in modern chrematistics is the inherent value of capital and property is the present value of cash flow, so we can believe the important status absolutely. The content of information of earnings and cash flow are very important for the investors and which is the...
Keywords/Search Tags:Information
PDF Full Text Request
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