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The ability of cash flows to predict the earning

Author

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  • Omar Mohammad Al-Hawatmeh

    (Department of Accounting, University of Jordan, Amman, Jordan Author-Orchid id: https://orcid.org/0000-0002-4396-0584)

Abstract

This study aims to test is ability of cash flows to predict the earning, his research is expected to give contribution in providing evidence on whether. (1) operating cash flow is useful to predicting earning. (2) Investing cash flow is useful to predicting earning. (3) Financing cash flow is useful to predicting earning. In the present research, Statistical population consists of firms listed on London Stock Exchange Group (LSEG) during 2015-2018. Earning (dependent variable) was measured by net income, operating income and independent variable, namely cash flows through operating, investing and financing operations. The results generally indicates the models' ability to interpret hypothesis and confirm the ability of cash flows to predict earnings.

Suggested Citation

  • Omar Mohammad Al-Hawatmeh, 2020. "The ability of cash flows to predict the earning," Journal of Social Sciences (COES&RJ-JSS), , vol. 9(2), pages 590-602, April.
    • Handle: RePEc:jso:coejss:v:9:y:2020:i:2:p:590-602
    DOI: 10.25255/jss.2020.9.2.590.602
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    References listed on IDEAS

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