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| Cash Flow Volatility, Earning Volatility and Firm’s Value |
| ZHOU Min WANG Chun-feng FANG Zhen-ming |
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Abstract Volatility risk in the operation process will affect firm's investment, financial decisions and dividend policy, and change its value. The empirical study finds that the cash flow volatility is significantly negatively related to firm value but earning volatility has no fixed relationship with it. So managers should control the risk to increase firm value by cash flow management rather than earning management. Finally, some suggestions to manage risks are provided.
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Received: 11 September 2008
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Corresponding Authors:
ZHOU Min
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2009, Vol. 210 
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