Forecast of cash flows in the listed firms of Tehran Stock Exchange

Subject Areas : Futurology

Rasoul Yarifard ¹ , Jafar Karmanj ² , Hossein Nematjoo ³ , Mahdi Ebrahimi ⁴

1 - PhD in accounting, Faculty member of Islamic Azad University Central Tehran Branch, Tehran, Iran
2 - MA student in accounting, Islamic Azad University Electronic Branch, Tehran, Iran
3 - MA student in accounting, Islamic Azad University Electronic Branch, Tehran, Iran
4 - MA in accounting, Islamic Azad University Science and Research Branch, Tehran, Iran (Corresponding Author)

Received: 2016-04-11 Accepted : 2016-07-26 Published : 2016-11-21

Keywords: Forecast of cash flow, Panel data, Cash flows, Factors affecting forecast of ,

Abstract :

Forecasts of cash flows are considered by investors, creditors,firm employees and rating institutions. Investors regard cash flows as the input of their investment models allowing them to make decisions about returns resulted from the divided profit and capital. Creditors are interested in the decisions of paying the firm obligations exchanging with them and the employees are concerned with cash flows in terms of job security and persistence of activities of firm that they are working there. Persistence of activity and the firm ability in timely payment of debts are also highly important for rating institutions. The main purpose of the present study is the investigation of forecasting cash flows among 97 firms from the listed firms of Tehran Stock Exchange from the beginning of 1388 to the end of 1392.To investigate the research hypotheses, it was used from panel data regression model. The results showed that the costs of sold goods and the public and administrative costs have significant impacts on forecasting cash flows, however, sales, change in the payable accounts, change in the receivable accounts, change in inventory, tax and cash flows of the last year have not significant impacts on forecasting cash flows.