Based on the models developed by Ohlson (1995 and 1999), the paper examines the persistency, forecasting and valuation relevance of earning components (accruals and cash flows) for a period of 10 years using NSE midcap 50 companies. The empirical research which uses panel data analysis (fixed...

Purpose – This study aims to investigate the persistence ability of accounting variables, namely, abnormal earnings, book value, accruals and cash flows over a period of time and their valuation relevance in Indian scenario. Design/methodology/approach –The study utilizes the generalized...