The relationship between risk information disclosure and corporate investment efficiency - An empirical evidence of Vietnam market
Abstract
The study aims to investigate the comparative power of cash flow, earnings and accrual components to facilitate the forecast of future cash flow (one year in advance). The research models are established based on the framework of Yangqiong Li, Jie He, Min Xiao (2018). In the study, data of earnings are extracted by using earnings before interest and taxes while that cash flow and accrual components by indirect method cash flow statements.
After processing data, a total of 286 listed companies on HOSE in the year of 2018 are obtained and examined. The results reveal that the predictability of earnings for future cash flow can be enhanced as earnings are decomposed into components of working capital accruals. Given the findings, the study contributes the limited research on ability of earnings to predict future cash flows to Vietnam capital market, thus, putting forward for further study to investigate their impacts on different industries as well as factors that can influence on the changes of accruals.