The Study of Relationship between Cash Flows from Operations, Net Income and Component of Accruals with Future Free Cash Flows of Listed Companies in Tehran Stock Exchange Print

One of the purposes of financial reporting is to predicting of cash flows that helps investors for economic decision making. A result of prior researches is ambiguous about information that has most usefulness in prediction of cash flows. Hence، the purpose of this research is to investigate the ability of net income and cash flows from operations to predict free cash flows. Also، an ability of Accruals Component in improvement of predicting free cash flows is investigated. This research utilizes panel data method with multivariate and univariate regression analysis and the data of sample of 78 firms during the period 2001-2010. Free cash flow is dependent variable and independent variables are net income، cash flows from operations and Component of Accruals. The results indicate that cash flows from operation in comparison with net income، has more ability in prediction of free cash flow. Also، adding Accruals Components in model of cash flows from operations improve the prediction of free cash flows.