Alternative Cash Flow Measures and Risk-Adjusted Returns
- 1 October 1986
- journal article
- review article
- Published by SAGE Publications in Journal of Accounting, Auditing & Finance
- Vol. 1 (4), 278-287
- https://doi.org/10.1177/0148558x8600100403
Abstract
This paper compares different definitions of cash flow in terms of their incremental explanatory power over historical cost earnings by reference to changes in equity share prices. Two refined definitions of cash flow as well as a crude definition are examined. The results indicate that no improvement in association with risk-adjusted security returns is obtained by using the refined cash flow definitions.Keywords
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