TY  - RPRT
U1  - Arbeitspapier
A1  - Kretzmann, Christian W.
A1  - Teuteberg, Torben
A1  - Zülch, Henning
T1  - Comparability of reported cash flows under IFRS
BT  - evidence from Germany
T2  - HHL Working paper
N2  - IFRS are intended to provide users with transparent and comparable financial information. However, in contrast to US GAAP and German GAAP, IFRS offer considerable flexibility regarding the classification of interest and dividends in the statement of cash flows. We explore the reporting practice of German listed firms and shed light on the determinants of classification choices which aim to increase operating cash flow (OCF). Our findings support prior research in that firms tend to increase OCF under specific circumstances, especially when they are highly leveraged and/or less profitable. Moreover, we find that industry practice plays a major role in determining firms’ reporting choices. Overall, our results cast doubt on whether the advantages of the flexibility offered under IFRS outweigh the disadvantages of reduced comparability. This HHL Working Paper was submitted to the journal Corporate Ownership and Control and published in the issue 12 (2015) 4, p. 906-927.
T3  - HHL-Arbeitspapier / HHL Working paper - 148 
KW  - Comparability
KW  - IAS 7
KW  - Cash flow
KW  - Classification
KW  - Interest
KW  - Dividends
Y1  - 2015
SN  - 1864-4562
SS  - 1864-4562
SP  - 45
S1  - 45
PB  - HHL Leipzig Graduate School of Management
CY  - Leipzig
ER  -