..., contrary to what is stated in the literature, cash flows from operations are not successful in explaining stock returns. This result suggests that cash flows are less important and not value relevant in Egypt compared to the USA or the UK. A possible explanation is that cash flows in Egypt are very...

... in explaining security returns. This approach examines the incremental value relevance of cash flows and earnings through their association with stock returns. It focuses on the role of both earnings and cash flows in the formulation of stock prices. The empirical question in incremental value relevance studies...

... are estimated using OLS to investigate the relative and incremental value relevance of accounting‐based performance measures. The relative value relevance tests are used to examine which performance measures better explain stock returns. The study also uses the incremental value relevance tests to examine...

...Steve C. Lim; Taewoo Park Purpose This paper aims to identify what drives the temporal reduction in the value relevance of earnings documented in the literature. Is it the increasing noise in stock returns over time, noise in earnings, or both? Design/methodology/approach The authors develop...

...) approaches, with monthly sampled data. We find that in all three markets dividend‐price ratios and/or dividend growth rates predict returns. Moreover, there is persistence in the variance of stock returns attributed to the innovations related to the same variables. © Emerald Group Publishing Limited 2005...