Investigating Effective Factors in the Usefulness of Cash Flows and Its Effects on the Pricing of the Investors

Information content is an accounting criterion which depends on its applications and usefulness in users decision-makings. This study aimed to investigate the effective factors in the usefulness of cash flows and its effects on the pricing of the investors. To test the hypotheses, Pearson correlation coefficient and regression methods were used. Statistical population of this study included all accepted companies in the Stock Exchange of Tehran. The sample included 158 companies, selected based on specific conditions from 2006-2010 by purposeful method. The results showed that the information content profit of cash element increases by rising expected usefulness of cash flow informationand information content of accruals profit decreases by the expected usefulness of cash flow information.