The Influence of Firm Growth, Size, and Financial Leverage on Information Content of Operating Cash Flows and Accounting Earnings: Evidence from Jordan: Industry Sector

Abstract

This paper aims to provide evidence from Jordan about the influence of a firms growth, size, and degree of financial leverage on the information content of operating cash flows and earnings, by using the Charitou et al., (2001) model. The model was implemented by selecting a sample consisting of 31 industrial corporations listed on the Amman Bourse from 1998 to 2002. The results of this study indicate that operating cash flows and earnings have information content. In addition, the information content of earnings, and operating cash flows increased for high growth firms, small size firms, and low leverage firms.