Application of Liquidity ratios, Cash flows and accrual accounting in predicting future operating cash flow in the context of companies listed in Tehran stock exchange

shahrokh bozorgmehrian¹ Mohsen sharififard²

1) Department of Accounting, Islamic Azad University, Masjed-soleiman Branch, Masjed-soleiman, Iran
2) Senior auditor in supreme audit court of islamic republic of iran

Publication : 2nd International Conference On Modern Researchs in Management, Economics & Accounting(2meaconf.com)
Abstract :
The purpose of this research is application of Liquidity ratios, Cash flows and accrual accounting in predicting future operating cash flow in the context of companies listed in Tehran stock exchange. Earnings and cash flows are very important in predicting future operating cash flow and stock prices. In this research, data are analyzed for the period of 2005-2014 by using of the Pooled Data system and Ordinary Least Square Regressions (OLS) Model. The results show that Cash flows, net income and Liquidity ratios are significantly (at the 5% level) associated with the future operating cash flow.
Keywords : "operating cash flow" "accruals" " traditional accounting earnings" "liquidity ratios "