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Causality between Cash Flow and Earnings: Evidence from Tehran (Iran) Stock Exchange.

Nasseri, A., Sayyadi, M., Yazdifar, H., Eskandari, R. and Albahloul, M., 2018. Causality between Cash Flow and Earnings: Evidence from Tehran (Iran) Stock Exchange. Journal of Emerging Market Finance, 17 (2), 210 - 228.

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Causality Between Cash Flow - Submitted 24 03 2018.pdf - Accepted Version
Available under License Creative Commons Attribution Non-commercial.


DOI: 10.1177/0972652718776860


This article employs data from 155 companies from 27 different industries listed on the Tehran Stock Exchange (TSE) for the period from 2000 to 2009 to examine the direction of causality between cash flow and earnings after taking consideration of stationarity and co-integration. The results indicate that there is a bidirectional causal relationship between cash flow and earnings at the level of all individual companies, so that cash flow variables caused earning variables and vice versa. However, at the level of industrial sectors, causality exists only between earning before interest and taxation (EBIT) and cash flow from operating activities (CFOA).

Item Type:Article
Uncontrolled Keywords:cash flow; earnings; Granger causality; stationarity; co-integration; Tehran Stock Exchange; Iran
Group:Bournemouth University Business School
ID Code:33707
Deposited By: Unnamed user with email symplectic@symplectic
Deposited On:10 Mar 2020 11:54
Last Modified:15 Aug 2021 08:22


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