Abstract
Prediction of cash flow from operating activities (CFO) is on the focus of most stakeholders of a firm since CFO is the major ingredient of the firm value and it reveals the financial health and liquidity of the firm. The extant literature focuses on the predictive abilities of today’s earnings and CFO figures. Different than the literature, we examine the predictive ability of cash flow from investing activities (CFI). By employing a sample of Turkish listed firms between 2009 and 2018, we document that CFI does have a significant impact on neither one-year-ahead CFO nor two-years-ahead CFO while it negatively and significantly affects three-years-ahead CFO. In other words, today’s cash investments are harvested three years after they take place.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
