The comparison of the value relevance of operating cash flows, current accruals, and non-current accruals with the value relevance of total amount of operating income؛ Evidence from Tehran Stock

Various studies (wolk & et al, 2004, Beaver & Demski ,1979) indicate that changes in reported accounting earnings lead to changes in stock prices. Since current accounting earnings is useful in predicting future earnings , So the current earning due to the ability to predict future earnings and future dividends, have information content In such a structure, the accounting profit indirectly have an impact on the valuation of stocks. The purpose of this study is to compare the value relevance of the total amount operating profit and cash and non-cash components of earning of the listed companies on Tehran Stock Exchange .The meaning of the value relevance is the relation of accounting variables such as earnings and its components with the company's stock value. In order to achieve the objective we selected, 91 companies from the statistical population that had necessary information for the 5 years period of the research (2007-2011). To examine the research hypotheses, panel data has been employed. For the test of research model significance t and F statistics were used. The findings of the study indicate that the value relevance of cash and accrual components of earnings compared with the overall profit is higher. According to research findings, as well as the cash component of earnings than the accrual component of earnings is more associated with the value of the firm. In addition, the value relevance of current accruals is greater than the value of non- current accruals.