The impact of Covid-19 pandemic on the value relevance of cash flows: evidence from banks

What is it about?

There is limited value-relevance of cash flows beyond accounting earnings and the book value of equity. The distinction between operating and non-operating cash flows is not informative. However, the value relevance is significant during the pandemic, indicating that investors rely on cash flows for valuation purposes at times of uncertainty, corroborating further research on cash flows distress predictive ability.

Featured Image