Investigating the Relationship between Abnormal Accruals and Future Cash Flows with Bankruptcy Risk Mediation

Forecasting cash flows and their changes as an economic event has been the focus of researchers, investors, managers, financial analysts and creditors. In this study, the relationship between abnormal accruals and future cash flows with the mediation of bankruptcy risk was investigated. To this end, information on 120 companies listed in Tehran Stock Exchange during the period 2011-2011 was reviewed. The purpose of this research is applied research and its method is correlative in nature and content. Research has been done in the framework of deductive-deductive reasoning and panel analysis has been assisted in hypothesis analysis. The results of testing the hypotheses showed that anomalous accruals have the predictive power of future cash flows, but the risk of bankruptcy has a negative effect on the positive relationship between them.