The relationship between Cash flows from operating activities in five-section andreturn on investment in four-section models of statement ofcash flows with Earnings persistence

The aim of this study is to investigate the relationship between Cash flows from operating activities in five-section model and return on investment in four-section model with the Earnings persistence. In order to investigate this issue selected sample of 171 firms enlisted in Tehran Stock Exchange during a 6 years period (from 2008 to 2014) .Data analysis was performed through Eviews software and consolidated structure (panel) and generalized least squares method (GLS) and in Weighted Cross section framework and by using Cross section fixed effect. The result of this study has shown that Cash flows from operating activities in five-section model and return on investment in four-section model have positive impact on earning persistence. In comparative situation the effect of return on investment in four-section model on Earning persistence is more than Cash flows from operating activities in five-section model. According to the results, financial decision makers and analysts can by simple changes, by simply arranging several elements together, and converting Cash flows from operating activities in five-section model into return on investment in four-section model, such as in The definition of this variable in the text of the article is to test the sustainability of company earning persistence more correctly.