Cash flow prediction is involved in a number of economic decisions, particularly in investment. Previous research conducted in the United States has provided inconsistency in the results of investigating accounting data, cash flow and accrual accounting data in predicting future cash flows. No published research has studied cash flow prediction in Thailand. The current study investigates the ability of accrual and cash flows accounting data to predict future cash flows of Thai listed companies. Three regression models are constructed namely earnings, cash flows, accrual components and cash flows models. In addition, cash flow ratios are investigated to predict future cash flows by using a stepwise regression. Data used in this study is collected from the financial statements of non-financial companies listed on the Stock Exchange of Thailand from 1994 to 2002. Cash flow data are selected directly from the cash flow statements. The empirical results show that past earnings, cash flows, cash flow and accrual component of earnings can be used to predict future cash flows of Thai listed companies and cash flows have better predictive power than past earnings. Additionally, the cash flow model and the cash flow and accrual components of earnings model have better predictive power than the earnings model. The findings of testing the models in an out-of-sample period suggest that the cash flow model is a better predictor of future cash flows than the other models. Furthermore, additional year lags of accounting data can improve the predictive power of the model. However, the results indicate that cash flow ratios are not a good predictor of future cash flows. In addition, this study finds that the Asian economic crisis had an impact on the predictive power of accounting data.

Cash flow prediction is involved in a number of economic decisions, particularly in investment. Previous research conducted in the United States has provided inconsistency in the results of investigating accounting data, cash flow and accrual accounting data in predicting future cash flows. No published research has studied cash flow prediction in Thailand. The current study investigates the ability of accrual and cash flows accounting data to predict future cash flows of Thai listed companies. Three regression models are constructed namely earnings, cash flows, accrual components and cash flows models. In addition, cash flow ratios are investigated to predict future cash flows by using a stepwise regression. Data used in this study is collected from the financial statements of non-financial companies listed on the Stock Exchange of Thailand from 1994 to 2002. Cash flow data are selected directly from the cash flow statements. The empirical results show that past earnings, cash flows, cash flow and accrual component of earnings can be used to predict future cash flows of Thai listed companies and cash flows have better predictive power than past earnings. Additionally, the cash flow model and the cash flow and accrual components of earnings model have better predictive power than the earnings model. The findings of testing the models in an out-of-sample period suggest that the cash flow model is a better predictor of future cash flows than the other models. Furthermore, additional year lags of accounting data can improve the predictive power of the model. However, the results indicate that cash flow ratios are not a good predictor of future cash flows. In addition, this study finds that the Asian economic crisis had an impact on the predictive power of accounting data.

The aim of this study is to investigate the relevance of goodwill impairment when predicting future cash flow regarding Swedish publicly listed companies on Nasdaq Stockholm. To investigate this, we serve to conclude the relationship between goodwill impairment and future cash flow and its incremental effect when predicting future cash flow.  To fulfill the purpose of the study we use an existing model developed by Bostwick, Krieger and Lambert (2016). The model is an expansion from an earlier model used for cash flow prediction, which was used before it was mandatory to do the annual goodwill impairment test. The model is used conducting a hierarchical regression and the data is mainly collected as secondary data from databases but also includes primary data from manually reviewing annual reports from the observed companies.  Due to the lack of significance we cannot conclude whether there is a positive or negative conjunction between Swedish publicly listed companies' goodwill impairments and future cash flow. Further there is no indication that goodwill impairment significantly aids in predicting future cash flow. We cannot conclude that goodwill impairment has neither a predictive value or confirmatory value, which implies that there is no relevance concerning Swedish publicly listed companies' goodwill impairments. / Syftet med studien är att undersöka relevansen hos nedskrivningar av goodwill vid prognostisering av framtida kassaflöde. Detta eftersom det övergripande syftet med finansiell rapportering ska vara att förse befintliga och potentiella investerare samt långivare och andra kreditgivare med användbar finansiell information vilket ska tjäna som beslutsunderlag.  Det empiriska underlaget består dels av sekundärdata hämtad från databaserna Retriever Business och Thomson Reuters Eikon, samt av primärdata från manuellt granskade årsredovisningar. För att studera relevansen hos nedskrivningar av goodwill vid prognostisering av framtida kassaflöden använder vi en regressionsmodell från en tidigare utförd studie på den amerikanska marknaden. Bostwick, Krieger och Lambert (2016) har utvecklat denna modell utifrån en studie gjord av Barth, Cram och Nelson (2001) där de expanderat den genom att inkludera goodwillnedskrivningar som en ytterligare variabel. Utifrån en multipel regressionsanalys ska det utläsas vilket prediktivt och bekräftande värde nedskrivningar av goodwill, tillsammans med övriga variabler, har vid prognostisering av framtida kassaflöde.  Genomförd regressionsanalys visar att nedskrivningar av goodwill inte har en stärkande effekt på förmågan att prognostisera framtida kassaflöde vid tillämpning av modellen framtagen av Bostwick et al. (2016). Studien kan inte visa att nedskrivningar av goodwill har ett prediktivt eller bekräftande värde vid prognostisering av framtida kassaflöde, således kan ingen relevans mellan dessa påvisas.