| Author: | Sharma, D.S. Iselin, E.R. |
| Title: | The relative relevance of cash flow and accrual information for solvency assessments: a multi-method approach |
| Journal: | Journal of Business Finance and Accounting
2003 : SEP/OCT, VOL. 30:7/8, p. 1115-1140 |
| Index terms: | Cash flow |
| Freeterms: | Accrual information |
| Language: | eng |
| Abstract: | The results of of two complementary experiments investigating the relevance of cash flow and accrual information are reported in this multi-method study. A behavioural field experiment investigated differences in the accuracy of solvency assessments between commercial lending managers using cash flow information and those using accrual information. Results showed that commercial lending managers using cash flow information made more accurate solvency assessments than managers using accrual information. Results of an archival quantitative modeling experiment complemented these results and showed that cash flow information had incremental information content beyond accrual information. |
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