The persistence of the cash component of russian companies’ earnings

The finance, taxes and book keeping
Authors:
Garanina Tat’jana A. Leevik Yuliya S. Ponomarev Anatoliy V.
Abstract:

The research shows the results of empirical analysis of the persistence of cash component of Russian conpanies’ earnings. Managers quite often artificially overestimate size of the accrual component of earnings for an embellishment of financial statements. Allocation of components of earnings and their assessment allows to forecast financial position of the companies and to makethe correct decisions concerning investments.