Corporate sustainability, earnings persistence and the association between earnings and future cash flows

Title: Corporate sustainability, earnings persistence and the association between earnings and future cash flows
Creator: Jia, Jing; Li, Zhongtian
Relation: Accounting & Finance Vol. 62, Issue 1, p. 299-336
Publisher Link: http://dx.doi.org/10.1111/acfi.12791
Publisher: John Wiley & Sons
Resource Type: journal article
Date: 2022
Description: Using data from Australian listed firms from 2002 to 2018, we found that firms’ sustainability performance is associated with higher future earnings and cash flows. We also revealed that firms’ sustainability performance was positively related to earnings persistence and had a positive effect on the association between earnings and future cash flows. Our findings support resource-based theory and the theoretical argument indicating a positive relationship between firms’ sustainability performance and earnings quality. This paper enriches the literature by showing that firms’ sustainability performance reveals information about their future financial prospects and earnings quality.
Subject: corporate sustainability; cash flows; earnings; earnings quality; earnings persistence; SDG 9; SDG 12; Sustainable Development Goals
Identifier: http://hdl.handle.net/1959.13/1452966
Identifier: uon:44557
Identifier: ISSN:0810-5391
Language: eng
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