المستخلص: |
This study develops a model for measuring operating cash flow (OCF) management, and investigates the effect of financial structure and audit quality (OCF) management behavior in the Egyptian market. In addition it investigates the effect of OCF management on the predictive ability of OCF. To capture the OCF management, I developed two models depending on both direct and indirect approaches of preparing cash flow statement. The results of the study provide evidence that heavy dependence on loans as a financing source (higher leverage ratio) leads to more OCF management. In addition, the results support the proposition that audit quality decreases OCF management. Moreover, the study provides evidence on regarding the negative effect of OCF management on the predictive ability of OCF.
|