Analysis and comparison of Accruals for profit from the perspective of sustainability and cash flows in the capital market from the perspective of the business cycle

Capital market boom and recession periods and their impact on companies are one of the key strategic issues. The present study aims to analyze the accruals of earnings in terms of sustainability and cash flows in the capital market from the perspective of the business cycle . The present study is a descriptive-correlational type based on the purpose, based on the nature and method. This research is based on a quasi-experimental research project using post-event approach (from past information). Also, according to the content of the subject, a field research is considered. The cycles of economic boom and recession (business cycle) are determined by the total index in the capital market of Tehran. In this research, the six-year period is divided into two periods of economic growth and the period of recession and profit stability through models of sustainability of profit and its components has been investigated in two cycles of prosperity and recession Is. The data were analyzed using a statistical society including 110 companies listed in Tehran Stock Exchange. For the period of 2011 to 1395, data were analyzed using combined data and ordinary least squares regression. The results of the hypothesis test indicate that the sustainability of profit during the economic boom period is more than the sustainability of profit during the recession. In other words, with the increase in the stock index, profitability has increased. Also, the sustainability of operating cash flow both during the economic boom and in the recession is more than the sustainability of earnings accruals.

Analysis and comparison of Accruals for profit from the perspective of sustainability and cash flows in the capital market from the perspective of the business cycle Keywords:

The period of economic boom and recession , Accruals earnings , Profit sustainability , cash flows of the capital market