The Information Of Cash Flow And The Value In The Company

The two main goals of Accounting are always considered to express useful informations for users and reflect the responsibility of executivers.The useful accounting information included in accounting sheet, especially in Balance Sheet and the Cash Flow Sheet. Two kinds of informations are very important for inventors and researches mostly focused on the value of the enterprises. The relationship between accounting information and stock price is the keyword factors for researches.The stock price on Chinese enquity market has changed a great from high to low in the past two years. Face to the America economic crisis, exposed by the listed companies express infornation,how about Cash Flow Sheet? If it can express information as much as Earning information, it did its function in the crisis? The article do the research on this questions.It talk about the goal of Accounting at the bigin of the article. the usefulness of accounting information is revealed by stock price reactions. Based on accrual basis accounting and accounting earnings manipulation,this article point out the history of the cash flows sheet. The argument of the importance of cash flows and earnings information reveals the significance of cash flow information. This article studies the information content of cash flows according to earings of accounting.It talk about how to use the cash flow information in the decidision of the value of enterprises.In the end,the article has its main research conclusions, it points out that cash flow has the content of information,it also has the implement information for earning of accounting, They are also play an important role in the decidision of the value of enterprises. Finally,the article talk about some limitations,and explains the reasons why the cash flow information content are not significant,it makes some suggestions on how to improve the implementing of cash flow information..in the value of entreprises.