Explore the Relationship between Profits and Cash Flow and Accruals on Corporate Sustainability

Abstract: The main aim of this study is to investigate the relationship between earning persistence, cash flow and accruals items of listed companies in Tehran Stock Exchange during the years 2009 to 2012.In this research, earnings persistence and accruals as independent variables, size and age firm as controllable variables are considered to examine their impact on corporate cash flows. The research statistical population consists of listed companies in Tehran Stock Exchange for the period 2009 to 2012 and the sampling method is screening and the final sample size equal to 110 companies .In this study which the multiple regression methods based on combined data panel with fixed effects was used to analyze the results of the 110 companies in 95% confidence level indicate Companies that have lower accruals have less earning persistence compared to cash flow persistence.The results show that in firms with higher accruals, there are less important relationship between profits and cash flow and in firms with lower accruals there are significant and positive relationship between profits and cash flows. Also the results indicate that the persistence of the operating profit and net profit in firms with low accruals, have no significant differences.

کلیدواژه ها:

Accruals ، Net Income Persistence ، Operating Income Persistence ، Cash Flow