Operating cash flow asymmetric timeliness in Australia |
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| Authors: | Meiting Lu Yaowen Shan Sue Wright Yimeng Yu |
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| Institution: | 1. Macquarie University, Sydney, NSW, Australia;2. University of Technology, Sydney, NSW, Australia;3. Newcastle Business School, University of Newcastle, Newcastle, NSW, Australia |
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| Abstract: | Operating cash flow (CFO) asymmetric timeliness occurs when CFO reflects bad news more quickly than good news. We examine the presence and determinants of CFO asymmetric timeliness in Australia, where substantial differences in reporting requirements of cash flow components, in characteristics of listed companies and in the degree of conservative financial reporting produce contrasting findings to those in the United States. We find supportive evidence for the novel ‘sticky cost behaviour’ explanation and also the product-pricing strategy, but not the life cycle hypothesis. These findings are useful for investors and analysts concerned with forecasting the future values of companies. |
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| Keywords: | Operating cash flow Asymmetric timeliness Firm life cycle Cost stickiness |
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