| Author(s) | Mohammed S. AI-Qabani Al-Sehali |
| Affiliation | Assistant Professor, Department of Accounting, King Saud University, Riyadh, Saudi Arabia |
| Title | The Value Relevance of Accrual Components in Saudi Listed Firms |
| Source | Journal of King Saud University. Administrative Sciences. Volume 18, No 2. (2006/1426) |
| Abstract | This study examines the value relevance of accrual components in Saudi Arabia during the 1995¬1999 sample period. The three components of accruals this study investigates are total accruals, current accruals, and non-current accruals. Furthermore, this paper investigates the influence of operating cycle on the relationship between cash flow and security retums of Saudi Arabian listed firms. The empirical results suggest that total accruals are not as important as aggregate accruals in mitigating mismatching and timing problems in cash flow from operation. Also, the study reveals that current accruals play an important role in improving earnings' ability to measure firm performance. Finally, the results indicate that non-current accruals are less important with regard to reducing mismatching and timing problems in cash flow from operation. |
