This study aims to examine the quality of accrual having economic consequences in predicting future cash flows manufacturing companies listed on Indonesia Stock Exchange (IDX) for 2017-2019 period. The population this were all (IDX), research sample was determineted using pusposive sampling method with a total 213 companies. data used is secondary from company’s annual report. analytical i mult...

Interpreting accruals as working capital investment, we hypothesize that firms rationally adjust their investment to respond to discount rate changes. Consistent with the optimal investment hypothesis, we document that (i) the predictive power of accruals for future stock returns increases with the covariations of accruals with past and current stock returns, and (ii) adding investmentbased fac...