기업재무상태에 따른 현금흐름정보의 상대적 유용성

다국어 초록 (Multilingual Abstract)

Strict attention to accrual accounting leads to the ignorance of cash flow information. However, it has been shown that cash flows provide additional information beyond accounting income. In Korea, cash flow information has drawn new attention since a cash flow statement was officially required in 1994. Cash flows could emerge as one of good information sources where accounting income is less reliable since cash flow information is less prone to be manipulated. This study attempts to evaluate whether relative value of cash flow information is high in financially poor firms where accruals tend to be used as a means of income manipulation. The results show that cash flows provide incremental information over accounting income in equity pricing. In particular, information value of cash flows information is high when firms financial position is not good. Also, cash flows prove to be one of good explanatory variables in bankruptcy prediction. Such results confirm the value relevance of cash flow information as a complement of information provided by accrual accounting income.