The global proliferation of reporting non-International Financial Reporting Standards (IFRS) (pro forma) earnings has been subject to academic debate and regulatory reform. This study examines whether non-IFRS earnings contain statistically significant information on future cash flow predictability that could be useful for investors. The study uses data from large Australian listed companies over a six-year period (2006–11) covering three distinctive periods around the global financial crisis (GFC): pre-GFC, GFC and post-GFC. Results based on fixed effects panel estimation methods suggest non-IFRS earnings do exert a significantly positive impact on future cash flow predictability but only during pre-crisis and crisis periods.
Journal article
Future cash flow predictability of non-IFRS earnings: Australian evidence
Australian Accounting Review, Vol.27(2), pp.118-128
2017
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Abstract
Details
- Title
- Future cash flow predictability of non-IFRS earnings: Australian evidence
- Creators
- Elisabeth Sinnewe - Queensland University of TechnologyJennifer L Harrison - Southern Cross UniversityAlbert Wijeweera - Southern Cross University
- Publication Details
- Australian Accounting Review, Vol.27(2), pp.118-128
- Identifiers
- 1826; 991012821640702368
- Academic Unit
- School of Business and Tourism; Management; Faculty of Business, Law and Arts
- Resource Type
- Journal article