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The relative information content of operating and financing cash flow in the proposed cash flow statement

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  • Rick N. Francis

Abstract

This study compares the relative information content of the new specifications of operating and financing cash flow as proposed jointly by the IASB and the FASB with the specifications in SFAS No. 95. A unique feature of the study is the use of the Siegel and Biddle (1994) test of relative information content. The results indicate that the proposed operating cash flow measure has less relative information content than the current measure, and the results for financing cash flow are consistent with equity investors finding no significant difference between the current and proposed measures.

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  • Rick N. Francis, 2010. "The relative information content of operating and financing cash flow in the proposed cash flow statement," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 50(4), pages 829-851, December.
    • Handle: RePEc:bla:acctfi:v:50:y:2010:i:4:p:829-851
    DOI: 10.1111/j.1467-629X.2010.00344.x
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    References listed on IDEAS

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    Cited by:

    1. Aclan Omag, 2016. "Cash Flows from Financing Activities. Evidence from the Automotive Industry," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(1), pages 115-122, January.
    2. Taisier A. Zoubi & Feras Salama & Mahmud Hossain & Yass A. Alkafaji, 2016. "The Value Relevance of Components of Other Comprehensive Income When Net Income Is Disaggregated," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 19(04), pages 1-36, December.

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