Abstract
Accurately predicting future cash flows is important for aiding executive, creditor, and investor decisions. This study compares the predictive ability of earnings and a continuum of cash flow measures within and between the petroleum, specialty retail, and high-tech industries. The results of our within-industry regression analysis indicate that current operating cash flows, calculated in accordance with Codification 230 (formerly SFAS 95), are a better predictor of subsequent operating cash flows than are other commonly used indicators, net income, net income plus depreciation, and working capital from operations. We also demonstrate conditions
Recommended Citation
Young, Brooke N.; Stammerjohan, William; and Swinney, Laurie
(2011)
"Forecasting Cash Flows: A Comparison of Prediction Models Within and Between Industries,"
Journal of Business, Industry, and Economics: Vol. 16, Article 1.
Available at:
https://roar.una.edu/jobie/vol16/iss1/1