Niclas Andrén
Prefekt Företagsekonomiska institutionen
Disappearing Investment-Cash Flow Sensitivities: Earnings Have Not Become a Worse Proxy for Cash Flow
Författare
Summary, in Swedish
According to a recent conjecture in the literature, earnings have become a poorer proxy for cash flow from operations over time. We find that since 1988, when cash flow statements started to be consistently reported in Compustat, the cash effectiveness of earnings has actually increased for a large sample of US manufacturing firms. This occurs despite the introduction of fair value accounting and increasing accounting accruals during the last three decades. Also contrary to the conjecture, using more comprehensive measures of cash flow does not restore the investment-cash flow sensitivity, which continues to be around 0.05 in more recent periods.
Avdelning/ar
- Företagsekonomiska institutionen
Publiceringsår
2017
Språk
Engelska
Länkar
Dokumenttyp
Konferensbidrag
Ämne
- Business Administration
Conference name
Financial Management Association Annual Meeting 2018
Conference date
2018-10-10 - 2018-10-13
Conference place
San Diego
Status
Published