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Earnings Persistence and the Value Relevance of Accounting Accruals in the Emerging Markets

Navissi, Farshid & Mirza, Malik (2006) Earnings Persistence and the Value Relevance of Accounting Accruals in the Emerging Markets. In Fullerton, Sam & Moore, David (Eds.) Global Business Trends: Contemporary Readings. The Academy of Business Administration, pp. 1-11.

Abstract

We investigate whether the persistence of earnings is attributed more to the accruals or the cash flow component for the Taiwanese firms. Evidence from the non-emerging market-related research indicates that although both components of current earnings are significant determinants of future earnings, cash flow has incremental contribution. We use pooled and decile ranking regressions to examine persistence of earnings, accruals and cash flows. We find significant incremental contributions by cash flows. Moreover, our results indicate that investors in Taiwan do not use information on earnings persistence in their price setting process.

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ID Code: 5057
Item Type: Book Chapter
Additional Information: For more information about this book please refer to the publisher's website (see link) or contact the author. Author contact details : m.mirza@qut.edu.au
Additional URLs:
Keywords: Earnings persistence, value relevance, accruals, cash flows
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > ACCOUNTING AUDITING AND ACCOUNTABILITY (150100) > Financial Accounting (150103)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Copyright Owner: Copyright 2006 The Academy of Business Administration
Deposited On: 10 Apr 2007
Last Modified: 03 Mar 2011 15:34

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