Information content of earning and earnings and cash flow volatility cycles

Information content is one of the accounting criteria which refers to it’s usefulness in decision making. Former researches have paid more attention to information content of accounting earning digit. Object of this paper is examining information content of earning by considering earning and cash flow volatility cycles.Statistical population in this research is firms listed in Tehran Stock Exchange (TSE), therefore based on considered conditions 50 firms selected over 1999-2009. Panel analyses are used for analyzing data.Findings show that accounting earning include information content. Other findings represent that information content of accounting earning has decreased in the firms having smoother earning.