Accounting, Cash Flow and Value Relevance

Focusing on the importance of operating cash flow, this book examines its value relevance for major European and US listed companies under IAS/IFRS. By employing a valuation model based on Ohlson's theory, the author demonstrates that operating cash flow is a crucial factor in assessing the market value of equity. The findings underscore the significance of cash flow disclosures, offering insights for standard setters and reinforcing the necessity of IAS 7 compliance.