Examining the Relationship between Profitability and Cash Flows Due to Accruals of the Companies Listed in Tehran Stock Exchange

Abstract

In line with the importance of corporate profits for the investor, shareholders and creditors, as well as the fact that the figures are based on the benefit obligation is recognized and part of the profits, or cash flows. In this research we are, with use of corporate information and their relationships with these accruals, we analyzed. The study features of profitability, accruals and operating cash flow of a sample of 170 companies in the Tehran Stock Exchange As during the years 2009-2013 using software eviews and examined the regression model. Earnings quality, depending on importance, except for cash, except a commitment to it. The difference between low Earnings quality depends on the size and quality of high interest accruals accruals is lining to a decile ranking. The results show that more have stable profitability compared to operating cash flow in the level of accruals is decile. Also results showed that, component operating cash more have stable than the accrual component. Keywords: Features of profitability, the accruals, operating cash flow