TY  - JOUR
AB  - This study examines empirical relationships of earnings, accruals, and cash flows for the U.S. food supply chain sector (i.e., agribusiness) and compares them with results for the complete U.S. market. In addition, we evaluate earnings before interest, taxes, depreciation, and amortization (EBITDA) as a potential proxy for cash flow. Empirical results show that while earnings and accruals are systematically positively related, accruals and cash flows are systematically negatively related. Moreover, both the magnitude and the behavior of EBITDA across different levels of cash flows for agribusinesses do not mimic cash flows. Thus, this metric is not a valid proxy for cash flow in accrual research studies.
VL  - 68
IS  - 2
SN  - 0002-1466
DO  - 10.1108/00214660880001232
UR  - https://doi.org/10.1108/00214660880001232
AU  - Omar Trejo‐Pech Carlos
AU  - Weldon Richard N.
AU  - House Lisa A.
PY  - 2008
Y1  - 2008/01/01
TI  - Earnings, accruals, cash flows, and EBITDA for agribusiness firms
T2  - Agricultural Finance Review
PB  - Emerald Group Publishing Limited
SP  - 301
EP  - 319
Y2  - 2024/09/19
ER  -