The Association of Operating Cash Flow and Accruals with Security Returns

J.D. Rayburn

doi:10.2307/2490732

Abstract

The relative association of operating cash flows and accounting earnings with security returns is addressed in several research papers. Any information that earnings provide about operating activities that is incremental to the information provided by cash flows is a function of the accrual adjustment process that transforms cash flows into earnings. The usefulness and reliability of accruals in a valuation context has been challenged by members of the financial community.1 The accrual process is criticized because it is based on historical cost and because reported

Keywords

AccrualCash flowEarningsOperating cash flowValuation (finance)Cash flow statementContext (archaeology)BusinessEconomicsAccountingEconometricsActuarial science

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Publication Info

Year: 1986
Type: article
Volume: 24
Pages: 112-112
Citations: 396
Access: Closed

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APA Style

                            
                                    J.D. Rayburn
                                
                            (1986). 
                            The Association of Operating Cash Flow and Accruals with Security Returns. 
                            Journal of Accounting Research
                            , 24
                            
                            , 112-112.
                            https://doi.org/10.2307/2490732

Identifiers

DOI: 10.2307/2490732