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The Effect of Abnormal Operating Cash Flows on Unconditional Conservatism

Author

Listed:
  • M. Aliakbari
  • B. Banimahd
  • Gh. Talebnia
  • F. Rahnamay Roodposhti

Abstract

This study attempts to find out the relationship between unconditional accounting conservatism and abnormal operating cash flows in Iranian firms. In this paper, unconditional conservatism is measured by Givoly and Hayen (2002), and abnormal operating cash flows is measured by Dechew and Tang model (2008). The statistical population studied at this research includes firms accepted in Tehran Stock Exchange, and the period of research is the years since 2006 to 2011. The systematic omission method has been used in this research in order to achieve the sample and 858 observations were chosen as the sample for research. Results show a negative relationship between unconditional accounting conservatism and abnormal operating cash flows. The results suggest that firms with upper levels of unconditional accounting conservatism appear to have lower abnormal operating cash flows.

Suggested Citation

  • M. Aliakbari & B. Banimahd & Gh. Talebnia & F. Rahnamay Roodposhti, 2015. "The Effect of Abnormal Operating Cash Flows on Unconditional Conservatism," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 5(1), pages 39-45, January.
    • Handle: RePEc:hur:ijaraf:v:5:y:2015:i:1:p:39-45
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    References listed on IDEAS

    as
    1. Yoon, Soon Suk & Miller, Gary A., 2002. "Cash from operations and earnings management in Korea," The International Journal of Accounting, Elsevier, vol. 37(4), pages 395-412.
    2. Luo, Mei, 2008. "Unusual operating cash flows and stock returns," Journal of Accounting and Public Policy, Elsevier, vol. 27(5), pages 420-429.
    3. McInnis, John & Collins, Daniel W., 2011. "The effect of cash flow forecasts on accrual quality and benchmark beating," Journal of Accounting and Economics, Elsevier, vol. 51(3), pages 219-239, April.
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