Cash Flow Volatility,Smooth Earnings and the Firm Value;Evidence from Chinese Stock Markets
利用1999至2008年中国上市公司数据，发现现金流波动性负向影响企业价值，而盈余波动性影响不显著；投资者能识别盈余信息，对现金流波动低、盈余操纵少的公司给予更高估值。
This paper presents evidence that cash flow volatility is negatively related to the firm values by analyzing data from listed firms on Chinese stock markets between 1999 and 2008.Earnings volatility has an insignificant effect on firm values.By decomposing earning volatility,we find that investors can identify information contents from earnings and assign higher values to firms with lower cash flow volatility and earning manipulations. Further analysis reveals the main channel between cash flow volatility and firm values is implied cost of capital, and only systematic component of cash flow volatility generates an impact on the firm value.Our results indicate that managers should focus on risk management to maintain a stable cash flow and enhance the firm values.