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Value Relevance of CFO and EPS: A Pakistani Context

Author

Listed:
  • Muhammad Kashif Saif

    (School of Economics & Business Administration, Chongqing University, Chongqing, China)

  • Muhammad Ibrahim Abdullah

    (School of Economics & Business Administration, Chongqing University, Chongqing, China)

  • Muhammad Suhail Sharif

    (School of Economics & Business Administration, Chongqing University, Chongqing, China)

  • Umair Saeed Bhutta

    (Wuhan University of Technology, Wuhan, China)

Abstract

The main purpose of this paper is to investigate the relative and incremental information contents of earning per share and cash flow from operation in the companies listed in Karachi Stock Exchange. This study also evaluates that whether EPS has more information content than then cash flow from operation. To achieve our objective we investigate 85 companies that are listed in Karachi Stock Exchange during the period 2008-2012. Our results indicate that EPS model is more preferable in explaining the stock return. Furthermore EPS has more information content than cash flow from operation. Our results confirm the earlier studies which have been made on different countries.

Suggested Citation

  • Muhammad Kashif Saif & Muhammad Ibrahim Abdullah & Muhammad Suhail Sharif & Umair Saeed Bhutta, 2014. "Value Relevance of CFO and EPS: A Pakistani Context," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(3), pages 94-99, March.
    • Handle: RePEc:ijr:journl:v:2:y:2014:i:3:p:94-99
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    More about this item

    Keywords

    EPS; Cash flow from operation; Information content;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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