Assessment of the Comparative Ability of Accounting Bases in Predicting Future Cash Flows: Evidence from Nigeria
| dc.contributor.author | Frank, Ebiaghan Orits | |
| dc.coverage.issue | 32 | cs |
| dc.coverage.volume | XII | cs |
| dc.date.accessioned | 2020-05-15T13:13:52Z | |
| dc.date.available | 2020-05-15T13:13:52Z | |
| dc.date.issued | 2018-12 | cs |
| dc.description.abstract | Purpose of the article: This study examines the comparative abilities of accrual-based and cash-based accounting information to predict future operating cash flows with particular focus on quoted Nigerian non-financial companies. Secondary data were utilized for the study and were extracted from published annual statements and accounts of eighty (80) quoted firms in Nigeria between 2005–2015. Methodology/methods: Data collected were statistically analysed with the aid of the Ordinary Least Square (OLS) regression method, correlation analysis, variance inflation factor (VIF) tests for multicollinearity, and the Breusch-Pagan/Cook Weisberg test for heteroscedasticity. 5% level of the test of significance was employed to measure the degree of statistical relationship between stated variables. Scientific aim: This research is aimed at empirically ascertaining, by means of available statistics, the comparative predictive abilities of accrual-based and cash-based accounting information in forecasting future cash flows for quoted non-financial companies in the Nigerian stock exchange. Findings: It has been revealed in this study that historical earnings data prepared under the accrual-basis possessed superior predictive ability over operating cash flows data in forecasting future cash flows of quoted non-financial firms in Nigeria. Conclusions: Company management who are saddled with the responsibility of preparation and presentation of financial statements as part of their management responsibility should, as a matter of utmost priority, uphold integrity and transparency by adhering strictly to the provisions of accounting standards so as to enhance reliability and decision-usefulness of financial disclosures with a view to improving the predictive ability of accounting information. | en |
| dc.format | text | cs |
| dc.format.extent | 35-48 | cs |
| dc.format.mimetype | application/pdf | en |
| dc.identifier.citation | Trendy ekonomiky a managementu. 2018, XII, č. 32, s. 35-48. ISSN 1802-8527. | cs |
| dc.identifier.doi | 10.13164/trends.2018.32.35 | cs |
| dc.identifier.issn | 1802-8527 | |
| dc.identifier.uri | http://hdl.handle.net/11012/187701 | |
| dc.language.iso | en | cs |
| dc.publisher | Vysoké učení technické v Brně, Fakulta podnikatelská | cs |
| dc.relation.ispartof | Trendy ekonomiky a managementu | cs |
| dc.relation.uri | https://trends.fbm.vutbr.cz/index.php/trends/article/view/trends.2018.32.35 | cs |
| dc.rights | © Vysoké učení technické v Brně, Fakulta podnikatelská | cs |
| dc.rights.access | openAccess | en |
| dc.subject | Accounting Bases | en |
| dc.subject | accounting information | en |
| dc.subject | accrual accounting | en |
| dc.subject | cash accounting | en |
| dc.subject | cash-flows predictions | en |
| dc.title | Assessment of the Comparative Ability of Accounting Bases in Predicting Future Cash Flows: Evidence from Nigeria | en |
| dc.type.driver | article | en |
| dc.type.status | Peer-reviewed | en |
| dc.type.version | publishedVersion | en |
| eprints.affiliatedInstitution.faculty | Fakulta podnikatelská | cs |
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