Document Details

Document Type : Article In Journal 
Document Title :
A Multivariate Prediction Model for Cash Flow in Saudi Firms
نموذج متعدد المتغيرات للتنبؤ بالتدفقات النقدية مع التطبيق على الشركات في المملكة العربية السعودية
 
Subject : Accounting 
Document Language : Arabic 
Abstract : The purpose of the study is to provide evidence on the relationships between various measures of cash flow and accrual earnings in predicting future cash flow. The study used a multivariate model in Saudi Firms: To achieve this purpose, the research is divided into four parts. The first part is a review of the previous studies in USA and Australia. The second part exhibits the ability of accrual earnings versus cash flows as predictors of future cash flows. Parts three and four explain the definition of cash flow and earnings variables and the application of multivariate prediction model for cash flow in Saudi firms. One of the research's results shows that traditional measures of cash flow (i.e. net income plus depreciation and amortization, and working capital from operations) is strongly related to earnings, while the correlations between adjustments measures of cash flow and earnings are low. The correlation between traditional cash flow measures and adjustment cash flow measures are low . The empirical results indicate that the cash flows provide better forecasts of future cash flows than earnings do, and the prediction model for cash flow shows high predictive ability where R2 = 98.82%. 
ISSN : 1319-0997 
Journal Name : Economics and Administration Journal 
Volume : 12 
Issue Number : 1 
Publishing Year : 1419 AH
1999 AD 
Article Type : Article 
Added Date : Sunday, October 11, 2009 

Researchers

Researcher Name (Arabic)Researcher Name (English)Researcher TypeDr GradeEmail
ثناء محمد إبراهيم طعيمةTHANAA MOHAMMED IBRAHIM TOEMAResearcher  

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