Abstract
The global proliferation of reporting non-International Financial Reporting Standards (IFRS) (pro forma) earnings has been subject to academic debate and regulatory reform. This study examines whether non-IFRS earnings contain statistically significant information on future cash flow predictability that could be useful for investors. The study uses data from large Australian listed companies over a six-year period (2006–11) covering three distinctive periods around the global financial crisis (GFC): pre-GFC, GFC and post-GFC. Results based on fixed effects panel estimation methods suggest non-IFRS earnings do exert a significantly positive impact on future cash flow predictability but only during pre-crisis and crisis periods.
Original language | British English |
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Pages (from-to) | 118-128 |
Number of pages | 11 |
Journal | Australian Accounting Review |
Volume | 27 |
Issue number | 2 |
DOIs | |
State | Published - Jun 2017 |