Çelik, OrhanErtugay, Emrah2022-04-152022-04-152013http://hdl.handle.net/20.500.12575/78916This study examines the role of current cash flows and total accruals in the prediction of future cash flows, which is crucial for the decision making process of financial information users. Accrual basis accounting does not consider the realization time of cash flows in earnings recognition. The economic transaction itself is sufficient for recognizing the revenue or expenses item regardless of actual payment or collection. Every accrual component is expected to convert into cash during the firm?s business cycle. Owing to this expectation, each component reveals a different set of information, while aggregate earnings can cover this information. In the first part of the study, the explanatory powers of cash flows and total earnings on the future cash flows are compared. It is shown that total accruals have a superior explanatory power than current cash flows. In the second part, the information content of the total earnings components is attempted to bet established. To do so, first of all, total earnings are disaggregated as cash flows and total accruals. Next, both the predictive power and the information content of components are compared to those obtained from the first part of the study. Hereby, it is proved that the disaggregation process of earnings enhances the predictive power of the model, and total accruals provide more information than the cash flow component. Subsequently, total earnings are decomposed into the cash flows and the major components of total accruals which are change in accounts receivables, change in inventories, change in accounts payable, amortization and depreciation and other accruals. Consequently, it is found that disaggregated accruals model has the highest predictive power, and the predictions are consistent with the information content of accrual components.trNakit akışıTahakkukİşletmedoctoralThesis