DIRECT METHOD OPERATING CASH FLOW CAPABILITY AS A PREDICTOR OF FUTURE OPERATING CASH FLOWS, PROFIT AND DIVIDENDS
Amount: DIRECT METHOD OPERATING CASH FLOW CAPABILITY AS A PREDICTOR OF FUTURE OPERATING CASH FLOWS, PROFIT AND DIVIDENDS
Authors: ZUHROTUL ISNANI
Memberships: Master of Accounting Study Program, Faculty of Economics and Business, Universitas Airlangga Surabaya
Publisher: Airlangga University
Abstract
This study is a test of the ability of direct operating cash flow as a predictor of future operating cash flows, earnings and dividends. The direct method of operating cash flow is believed by the FASB (1987) and AASB 1026 (1992) to have a more accurate ability as a predictor of future operating cash flows. Research conducted by Ou and Penman (1992), Finger (1994), Krishnan & Largay (2000), Kusuma H. (2001), Suardhika (2003) shows that the direct method of cash flow has predictive ability as a predictor of future operating cash flows. , profits and dividends. Various previous studies were used as a reference for the hypothesis in this study.
The type of research used to prove the proposed hypothesis is quantitative research with the scope of research being industrial companies listed on the Jakarta Stock Exchange during the period 2000-2003 as the prediction year. This research has been conducted since 2000, because since 2000 the capital market authority (Bapepam) has required all listed companies to use the direct cash flow method: Purposive sampling method was used to select those to be used in this test. Data was collected using the secondary data documentation method from unqualified opinion financial statements, especially cash flow statements, as well as footnotes on industrial companies. Then the data collected was analyzed with SPSS series 11 with a regression technique.
The results of testing the hypothesis confirm that operating cash flows have a significant ability as a predictor of future operating cash flows, earnings and dividends.
Keywords: Future Operation Cash Flow, Earnings, Dividend and Cash Flow Statement in Direct Operation Method
sources: http://repository.unair.ac.id/36101/
