Cash Flow, Earning Opacity and its Impact on Stock Price Crash Risk in Tehran Stock Exchange
AbstractThis study examined the role of operating cash flow and its ability in predicting and reducing stock price crash risk. The aim of this study was to investigate efficacy of operating cash flow on predicting and detecting stock price crash risk and also investigating role of operating cash flow on earning opacity in companies. The research methodology was of survey-explorative correlation type and the data were gathered using library method. The statistical population included companies accepted in Tehran Stock Exchange during 2006 to 2010, from which the sample was selected. Also, regression and correlation coefficients were used to examine correlation degree and relationship direction of the variables. The research results indicated a significantly inverse relationship between operating cash flow and stock price crash risk. Moreover, a significantly inverse relationship existed between operating cash flow and earning opacity; i.e. the higher the operating cash flow, the lower the earning opacity.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences in its journal International Journal of Academic Research in Accounting, Finance and Management Sciences.
Volume (Year): 3 (2013)
Issue (Month): 4 (October)
Contact details of provider:
Web page: http://hrmars.com/index.php/pages/detail/Accounting-Finance-Journal
Cash flow; earning opacity; stock price crash risk; Tehran Stock Exchange;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bhattacharya, Utpal & Daouk, Hazem & Welker, Michael, 2003. "The World Price of Earnings Opacity," Working Papers 127185, Cornell University, Department of Applied Economics and Management.
- Hutton, Amy P. & Marcus, Alan J. & Tehranian, Hassan, 2009. "Opaque financial reports, R2, and crash risk," Journal of Financial Economics, Elsevier, vol. 94(1), pages 67-86, October.
- Jin, Li & Myers, Stewart C., 2006. "R2 around the world: New theory and new tests," Journal of Financial Economics, Elsevier, vol. 79(2), pages 257-292, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hassan Danial Aslam).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.