| Abstract: | Much available numerical information is non-financial. This information has the advantages of quantifying events that cannot be expressed in financial terms, timeliness and the avoidance of accounting procedures. This paper investigates the usefulness of quantitative non-financial information (QNFI) as a proxy for current and future economic and accounting income. The study analyses a hypothetical firm which undertakes long term contracts. A mathematical model is constructed of the cash generation process of the company. QNFI measures are found to dominate accounting measures with regard to estimating economic income and predicting both economic and accounting income. These results are confirmed by a stochastic simulation model which allows for a more complex model. |
