Investors consider cash flows to be more value relevant than profitability disclosures. This value relevance emerges from low discretionary control of managers on cash flows compared to net income. The accrual accounting is based on recognizing revenues and expenses as they occur and not when...

This study investigates the forecasting power of implied volatility indices on forward looking returns. Prior studies document that negative innovations to returns are associated with increasing implied volatility of the underlying indices; thus, suggesting a possible relationship between...