ABSTRACT
This chapter explains the Kuhnian sequence which involves a relatively sophisticated empirical testing of the prescriptive claims made for them by normative theorists. Typically, these are designed to demonstrate whether there is statistically significant support for the notion that cash flow accounting data contain information incrementally beyond that contained in conventional earnings. The different categories of empirical research are represented in the following reproduced papers. Largay and Stickney, Lawson, Lee, and Arnold and wearing each use the technique of a detailed analysis of the past cash flow results of well-known companies, either to demonstrate how to use the available data, or to provide evidence of how specific corporate situations are better revealed by the use of cash flow analyses. Largay and Stickney, on the other hand, look to cash flow accounting's potential to predict corporate failure. Certain of the studies fall into a general research category of using publicly-available data to empirically test modelled relationships.
