The Effect of Cash Flows on Regular Stocks Returns : A field Study on Publicly Listed Companies

Abstract

This study examined the effect of cash flows on regular stocks returns

of listed corporations at the Palestine securities exchange market regarding

that stock returns are affected by several factors out of which the corporations

generated cash flows.

The study included all of the listed corporations for stock trading on

Palestine security exchange market.

The study concluded that there is no empirical evidence of the relation

between operating cash flows and returns for the mentioned companies nor

there is a relation between returns and financial or investment cash flows.

This brings up the fact that other factors contribute to the determination

of shares market prices.

Several recommendations were the outcome of the study. Amongst

these is the recommendation for periodical analysis for the assuredness of

the study regarding that market efficiency can and do change over time. The

study recommended that information made sent and made available for all of

those who deal with the stock market at the same point in time at low costs.

Another recommendation is the need to enhance investment and accounting

awareness for all of those who trade and deal with the exchange.