Abstract
This study provides information on predictive ability of annual earnings and cash flow from op- eration numbers. We obtained a sample of 42 BEI (Bursa Efek Indonesia) listed companies and 168 observation, year-end firms from 2005 to 2009. We find that both cashflows and earnings numbers have substantially predictive ability for future cashflows. Furthermore, this study doc- uments that cashflows numbers have more predictive ability for future cashflows than earnings and the result are robust. Key words: Earnings, Earnings and Cashflows Prediction, Cashflow.
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