Persistence of the Cash Component of Earnings for Companies Listed in Tehran Stock Exchange

This study attempts to answer the question that which one of cash components of earning is the cause of persistence of cash component of earnings more than accrual component. Cash component of earnings are decomposed into: (1) the changes in the cash balance, (2) issuances/distributions to debt, and (3) issuances/distributions to equity. In these analyses a sample of companies in Tehran Stock Exchange has been used in 1382 to 1387. For the analysis of the data, multivariate regression and panel data method were used. The results show that the higher persistence of the cash component is due to the subcomponent related to equity. Also, the cash distributed to debt holders has the lowest level of persistence than other cash component of earning.