Value Relevance of Cash Flow Information: A Study on BIST

Abstract

The value relationship, which is one of the basic characteristics of accounting information, is the power of accounting information to explain stock prices. Value relationship can be explained as the long-run relationship between accounting information and firm value. Cash flow information is one of the basic accounting information which users need while determining the firm's value. The cash flow statement, in which cash flow information is reported, is as important the financial statement as the balance sheet and income statement. The aim of the study is to determine the value relationship of cash flow information. Within the scope of the purpose, the relationship between the cash flow information of the BIST 100 companies whose data can be accessed between 2014-2019, and the stock price was analyzed by panel data analysis. As a result of the study, it has been determined that cash flow statement data has a valued relationship in manufacturing and non-manufacturing sectors and the value relationship of end-of-period cash information is high.

Keywords

• Value Relevance
• Cash Flow Information
• Panel Data Analysis

Nakit Akış Bilgilerinin Değer İlişkisi: BİST Üzerine Bir Araştırma

Abstract

Muhasebe bilgilerinin temel niteliklerinden olan değer ilişkisi, muhasebe bilgilerinin hisse senedi fiyatlarını açıklayabilme gücüdür. Değer ilişkisi, muhasebe bilgileri ile firma değeri arasındaki uzun dönemli ilişki olarak açıklanabilir. Firma değerinin tespitinde, muhasebe bilgi kullanıcılarının ihtiyaç duyduğu temel muhasebe bilgilerinden birisi nakit akış bilgisidir. Nakit akış bilgilerinin raporlandığı nakit akış tablosu, bilanço ve gelir tablosu kadar önemli bir finansal tablodur. Çalışmanın amacı, nakit akış bilgilerinin değer ilişkisini tespit etmektir. Amaç kapsamında, BİST 100 şirketlerinden 2014-2019 yılları arasında verilerine ulaşılabilen şirketlerin nakit akış bilgileri ile hisse senedi fiyatı arasındaki ilişki, panel veri analizi ile analiz edilmiştir. Çalışma sonucunda; nakit akış tablosu verilerinin imalat ve imalat dışı sektörlerde değer ilişkisine sahip olduğu, dönem sonu nakit bilgisinin değer ilişkisinin yüksek olduğu tespit edilmiştir.

Keywords

• Değer ilişkisi
• Nakit Akış Bilgisi
• Panel Veri Analizi

References

1. Aktaş, H. (2009). Hisse Senetleri Piyasasında Muhasebe Bilgilerinin Önemi: İMKB’de Değer İlişkisi Analizi. Ankara: Gazi Kitabevi.
2. Ali, A., And P. Pope. (1995). The Incremental İnformation Content of Earnings, Funds Flow and Cash Flow: The UK Evidence. " Journal of Business Finance and Accounting", 22(1), 19-34.
3. Anandarajan, A., Hasan, I., Isik, I. and Mccarthy, C. (2006). The Role of Earnings and Book Values İn Pricing Stocks: Evidence from Turkey. "Advances in International Accounting. " 19, pp:59–89.
4. Baldemir, E. ve Keskiner, A. (2004), Devalüasyon, Para, Reel Gelir Değişkenlerinin Dış Ticaret Üzerine Etkisinin Panel Data Yöntemiyle Türkiye İçin İncelenmesi, "Dokuz Eylül Üniversitesi Sosyal Bilimler Enstitüsü Dergisi", ss:44-59.
5. Ball, R., & Brown, P. (1968). An Empirical Evaluation of Accounting Income Numbers. , "Journal of Accounting Research ", 6(2), pp:159–178.
6. Baltagi, B. (2005). Econometric Analysis of Panel Data. West Sussex: John Wiley & Sons.
7. Barth, M. E., Cram, D. P., & Nelson, K. K. (2001). Accruals and The Prediction of Future Cash Flows. " The Accounting Review, " pp:76(1), 27-58.
8. Barth, M. E., Beaver, W. H. and Landsman, W. R. (2001). The Relevance of The Value Relevance Literature for Financial Accounting Standard Setmiştirng. "Journal of Accounting and Economics" 31(1–3), pp:77–104.

9. Bernard, V. L., & Stober, T. L. (1989). The Nature and Amount of Information in Cash Flows and Accruals. "Accounting Review", 64(4), pp:624.
10. Black, E. L. (1998). Which İs More Value Relevant: Earnings or Cash Flows? A Life Cycle Examination, Working Paper, University of Arkansas, Fayetteville, Arkansas.
11. Bowen, R. M., Burgstahler, D., & Daley, L. A. (1986). Evidence on The Relationships between Earnings and Various Measures of Cash Flow. " Accounting Review", 61(4), pp:713-726.
12. Brown, S., Kin, L., & Lys, T. (1999). Use of R2 İn Accounting Research: Measuring Changes in Value Relevance over The Last Four Decades. " Journal of Accounting & Economics", 28(2), pp: 83-115.
13. Clacher, I., Ricquebourg, A. J., & Hodgson, A. (2013). The Value Relevance of Direct Cash Flows under International Financial Reporting Standards. " Abacus", pp:367-395.
14. Charitou, A., Clubb C, and Andreou, A. (2001). The Effect of Earnings Permanence, Growth and Firm Size on The Usefulness of Cash Flows and Earnings in Explaining Security Returns: Empirical Evidence from The Uk. "Journal of Business Finance and Accounting", 28(5), pp:563-593.
15. Cheng, C., Liu C, and Schaefer T. (1996). Earnings Permanence and The İncremental İnformation Content of Cash Flows from Operations. " Journal of Accounting Research", 34, pp:173-181.
16. Chikashi, T. O. (2013) An Investigation of Comprehensive Income and Firm Performance: The Case of The Electric Appliances Industry of The Tokyo Stock Exchange. "Journal of Accounting and Finance Research", Vol 2(2), pp: 29-35.
17. Cotter, Julie. (1996). Accrual and Cash Flow Accounting Models: A Comparison of The Value Relevance and Timelines of Their Components. "Accounting and Finance", 36, pp:127-150.
18. Croisant Y, Millo G (2018). Panel Data Econometrics with R: the plm package. Wiley.
19. Driscoll, J. C., &Kraay, A. C. (1998). Consistent Covarian Cematrix Estimation with Spatially Dependent Panel Data. " Review of Economics and Statistics", 80(4), pp:549-560.
20. Ertuğrul, M (2017). Muhasebe Verilerinin Değer İlişkisinin Farklı Sermaye Yapılarına göre Zaman İçindeki Değişimi: Mist Ülkeleri Analizi. Galatasaray Üniversitesi Sosyal Bilimler Enstitüsü Yayımlanmamış Doktora Tezi.
21. FASB, (1984). Recognition and Measurement in Financial Statements of Business Enterprises, Statement of Financial Accounting Concepts No. 5, Stamford, USA.
22. Francis, J., & Schipper, K. (1999). Have Financial Statements Lost Their Relevance? "Journal of Accounting Research", 37(2), pp:319–352.
23. Freeman, R. N., & Tse, S. Y. (1992). A Nonlinear Model of Security Price Responses to Unexpected Earnings. "Journal of Accounting Research", 30(2), pp:185-209.
24. Frino, A., And S. Jones. (2005). The İmpact of Mandated Cash Flow Disclosure on Bid-Ask Spreads. "Journal of Business Finance and Accounting", 32(7/8), pp:1373-1396.
25. Garrod ve Hadi (1998). Investor Response to Cash Flow Information Journal of Business Finance & Accounting, 25-5 pp:613-630.
26. Grene, William H., “Econometric Analysis”, (1997), New Jersey.
27. Gujarati, Damodar N. (2004), "Basic Econometrics", McGraw-Hill, New York.
28. Güleç, Ö. F. (2017). Nakit Akışları ve Kazançların Değer İlişkisi: Borsa İstanbul Uygulaması. "Muhasebe Bilim Dünyası Dergisi", 19, 2, pp:524-546.
29. Habib, A. (2008). The Role of Accruals and Cash Flows in Explaining Security Returns: Evidence from New Zealand. "Journal of International Accounting, Auditing, and Taxation", 17, pp:51-66.
30. Hansen B.E (1995). Rethinking the Univariate Approach to Unit Root Testing: Using Covariates to Increase Power, " Econometric Theory", 11(5), pp:1148–1171.
31. IASB, (2015). “The Conceptual Framework for Financial Reporting”, London, England.
32. Karunarathne W. V. A. D and Rajapakse R. M. D. A. P. (2014). The Value Relevance of Fınancıal Statements Informatıon: wıth Specıal Reference to The Lısted Companıes in Colombo Stock Exchange. Pp:1-20
33. Landsman, W. R., & Magliolo, J. (1988). Cros-Sectional Capital Market Research and Model Specification. "Accounting Review", 63(4), 586-604.
34. Liao, M., & Gao, Y. (2015). Inflation, Cash Flow, and Stock Price. "Chinese Review of Financial Studies. ",04.
35. Liu, J., & Thomas, J. (2000). Stock Returns and Accounting Earnings. "Journal of Accounting Research", 38(1), pp:71-101.
36. Livnat, J., & Zarowin, P. (1990). The Incremental Information Content of Cash-Flow Components. "Journal of Accounting and Economics", 13(1), pp:25-46.
37. Miller, M. H. and Modigliani, F. (1966). Some Estimates of The Cost of Capital to The Electric Utility Industry, 1954-1957. "American Economic Review. " 56(3), 333–391.
38. Mulenga, M. J. (2016). International Financial Reporting Standards Adoption and Value Relevance of Accounting Information: A Brief Literature Review. " International Journal of Economics, Commerce and Management " 4(6), pp:814–827.
39. Orpurt, S. F. & Zang, Y. 2009. Do Direct Cash Flow Disclosures Help Predict Future Operating Cash Flows and Earnings? "The Accounting Review", 84, pp:893-935.
40. Özçelik, H. (2018). Muhasebe Bilgisi Değer İlişkisi: BİST Gıda İçecek Sektörü Üzerine Bir Araştırma. MANAS Sosyal Araştırmalar Dergisi, 7(4). Pp:127-137.
41. Sims, Christopher A., (1980). “Macroeconomics and Reality”, "Econometrica", Vol:8, No:1, pp:1–48.
42. Sloan, R. G. (1996). Do Stock Prices Fully Reflect Information in Accruals and Cash Flows about Future Earnings? "Accounting Review", 71(3), pp:289-315.
43. TMS 7 Nakit Akış Tablosu Standardı, Türkiye Muhasebe Standartları.
44. Torres-Reyna, O. (2010) Panel Data Analysis. Fixed and Random Effects. Online Training Section-DSS at Princeton University.
45. Walker, M. (1997). Clean Surplus Accounting Models and Market-Based Accounting Research: "A Review. Accounting and Business Research" 27(4), pp:341–355.
46. Wicklin, R. (2011). Log transformation: how to handle negative data values? The.Doo.Loop.URL:blogs.sas.com.http://blogs.sas.com/content/iml/2011/04/27/log-transformations-how-to-handle-negative-data values/ erişim tarihi 26.09.2022.
47. Zeileis, A., Hothorn, T. (2002). Diagnostic Checking in Regresion Relationships. R News 2(3), 7-10. URL https://Cran.R-project.org/doc/Rnews/.