The primary focus of this study is to investigate whether the level of earnings management through real activities (REM) affects the value relevance of reported cash flows from operations (CFO), precisely with regard to their ability to predict future CFOs. Using the data related to CAC all tradable listed French firms during 2008 through 2015, we provide evidence which supports the expected decrease in value relevance of reported CFO for future CFOs’ prediction in the presence of REM. Our finding highlights the fact that if managers decide to manipulate upward earnings through operating activities, they could adversely affect the information content of CFOs. More precisely, an aggressive deviation from normal activities leads to abnormal levels of the main operating inflows and outflows in an inconsistent way and this deteriorates the value relevance of cash flows from operations. This contribution is of use for creditors and investors and other key CFO users for prediction purposes as it urges them to make necessary adjustments when predicting the future ability of an entity to generate cash flows.

中文翻译：

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实际收益管理与营业现金流的相关性：对法国上市公司的研究

这项研究的主要重点是调查通过实际活动（REM）进行的收益管理水平是否会影响所报告的经营活动现金流量（CFO）的价值相关性，就其预测未来CFO的能力而言。使用与2008年至2015年期间所有可交易的法国上市公司的CAC相关的数据，我们提供的证据支持在存在REM的情况下，报告的CFO的价值相关性预期下降，对于未来CFO的预测而言。我们的发现凸显了这样一个事实，即如果管理人员决定通过经营活动操纵向上的收入，则会对CFO的信息内容产生不利影响。更确切地说，与正常活动的重大偏离导致不一致的主要经营流入和流出水平，这恶化了经营现金流的价值相关性。此捐款可用于债权人和投资者以及其他主要CFO用户进行预测，因为它敦促债权人和投资者以及其他关键CFO用户在预测实体未来产生现金流量的能力时进行必要的调整。