IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The impact of accruals and cash flows on the returns-earnings relation: evidence from Greece

Listed author(s):
  • Panagiotis E. Dimitropoulos
  • Dimitrios Asteriou

This paper aims at examining the impact of earnings and cash flows relevance on stock return movements within the Greek capital market from 1996 to 2004. Results indicated that earnings have higher incremental importance in explaining stock return movements compared with cash flows as earnings have been found to affect stock returns positively. Additionally, tests on the incremental informativeness of cash flows when earnings are transitory did provide significant results suggesting that investors seek for alternative measures of firms' performance when earnings are characterised by increased extremity. Moreover, cash flows and earnings seem to be equally value relevant when investors evaluate big-sized firms but on the contrary, cash flows are highly valued for firms with increased growth opportunities. Finally, the empirical findings with respect to the effect of leverage on the informational content of earnings and cash flows, provides support to the hypothesis that earnings become less value relevant for high leveraged firms.

If 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.

File URL:
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Accounting, Auditing and Performance Evaluation.

Volume (Year): 5 (2009)
Issue (Month): 4 ()
Pages: 384-407

in new window

Handle: RePEc:ids:ijaape:v:5:y:2009:i:4:p:384-407
Contact details of provider: Web page:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ids:ijaape:v:5:y:2009:i:4:p:384-407. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Darren Simpson)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.