IDEAS home Printed from
   My bibliography  Save this article

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


  • 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.

Suggested Citation

  • Panagiotis E. Dimitropoulos & Dimitrios Asteriou, 2009. "The impact of accruals and cash flows on the returns-earnings relation: evidence from Greece," International Journal of Accounting, Auditing and Performance Evaluation, Inderscience Enterprises Ltd, vol. 5(4), pages 384-407.
  • Handle: RePEc:ids:ijaape:v:5:y:2009:i:4:p:384-407

    Download full text from publisher

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

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. repec:eee:advacc:v:29:y:2013:i:1:p:108-123 is not listed on IDEAS


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.