Accounting and Auditing Studies

Accounting and Auditing Studies

The investigation of relationship between unusual operating cash flows and stock return of listed companies in Tehran stock exchange

Document Type : Original Article

Authors
Seyyed Abbas Hashemi
Mojtaba Motalebian
10.22034/iaas.2013.105405
Abstract
In theoretical framework of financial reporting, the role of financial information and its usefulness on investors decision making is mentioned. One of the required factors for usefulness of financial information is its power of explanation and prediction.  So, investors, using financial information, start to assess and predict stock returns. Operating cash flows can have effect on companies’ performance and lead to some changes in stock returns. Some parts of operating cash flows are due to unusual events. In this regard, the aim of present study is to investigate the relationship between unusual operating cash flows and stock return of listed companies in Tehran stock exchange. For analyzing the data, regression model is used. For estimating the used model, financial information of 80 international companies, from 2002 to 2011, by method of pooling data was used. The results of hypothesis test showed that there is a significant and negative relationship between unusual operating cash flows and future stock returns.
Keywords
operating cash flows
Unusual operating cash flows
Stock Return
Accounting and Auditing Studies
Volume 2, Issue 5
Spring 2020
Pages 42-57