أثر إشارة الأرباح المحاسبية و التدفقات النقدية التشغيلية على محتواهما المعلوماتي

Abstract EN

The study aims at examining the effect of the sign of both accounting earnings and net cash flows from operating activities on their information content.

The researchers hypothesized that both variables will have a significant information content when they both have a positive sign, and no information content when they both have a negative sign.

Furthermore, the information content of the two variables increases when they both have a positive or negative sign.

A sample of 88 industrial and service companies listed on Amman Stock Exchange during the period 1995-2003 was used with a total number of 641 observations.

The results show that : (1) Positive accounting earnings and positive cash flows from operations have an information content, while negative accounting earnings and negative cash flows from operations do not, (2) Positive accounting earnings and positive cash flows from operations have an additional information content in the presence of the other variable, (3)The information content of both variables increases when the change in both of them is positive.