Do Investors Value Smooth Performance? PoorSatisfactoryGoodVery GoodExcellent Be the first. (0 ratings) Log in to rate this article. CFA Digest May 2009 | Vol. 39 | No. 2 | 3 pages Source: CFA InstituteBrian Rountree James P. Weston George AllayannisFrank T. Magiera, CFA (Reviewer) Read Abstract Earnings smoothing arises from management’s use of accruals to provide a desirable flow of earnings that will result in increased shareholder value. The authors provide empirical evidence that managing smooth cash flows is more value enhancing than smoothing earnings. They show that the less volatile the cash flow stream, the more valuable the company. View more information Topics Equity Investments : Fundamental Analysis (Sector, Industry, Company) and the Valuation of Individual Equity Securities | Financial Statement Analysis Credits · About the CE Program 0 CE (including 0 SER) Record credits Credits recorded Members, log in to record your credits. Manage CE Credits People who viewed this page also viewed: Top Hedge Fund Investors: Stories, Strategies, and Advice This book chronicles top hedge fund investors that played key roles in the industry, including substantial information on manager sourcing, ... More Credit Suisse Global Wealth Report The "Credit Suisse Global Wealth Report" is a comprehensive study of world wealth that analyzes the world’s entire 200 trillion ... More Credit Suisse Global Wealth Databook This Databook displays the detailed dataset backing the "Credit Suisse Global Wealth Report," the comprehensive study of world ... More Loading ...