the usefulness of core and non-core cash flows in predicting future cash flows（核心和非核心的有用性现金流预测未来现金流）.pdfVIP

The Usefulness of Core and Non-Core Cash Flows in Predicting Future Cash Flows by C. S. Agnes Cheng University of Houston Houston, Texas 77204-4852 Dana Hollie* University of Houston Houston, Texas 77204-4852 First Draft: January 2004 This Draft: January 2005 *Contact Author University of Houston C. T. Bauer College of Business Department of Accountancy Taxation 334 Melcher Hall, Ste 390-F Houston, Texas 77204-4852 Phone: (713) 743-4830 Email: dhollie@uh.edu Acknowledgments: The authors appreciate the comments of Mary Geddie, K. (Shiva) Sivaramakrishnan, Scott Whisenant, accounting brown bag participants at the University of Houston and an anonymous reviewer. The Usefulness of Core and Non- Core Cash Flows in Predicting Future Cash Flows Abstract: We extend the Barth, Cram, and Nelson (2001) model with disaggregated accruals by investigating whether cash flow components (core and non-core cash flows) improve cash flow predictability. BCN investigate the role of accrual components in predicting future cash flows while this study extends their study by investigating the role of cash flow components. We propose a cash flow prediction model that decomposes cash flows into cash flow components that parallel the presentation and format of operating net income from the income statement. Consistent with the AICPA’s and financial analysts recommendations, and as predicted, we find that cash flow components do reflect different information relating to future cash flows. We also find that the disaggregation of cash flow into the BCN Model sign