Operating cash flow asymmetric timeliness in Australia

Meiting Lu, Yaowen Shan, Sue Wright*, Yimeng Yu

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)


Operating cash flow (CFO) asymmetric timeliness occurs when CFO reflects bad news more quickly than good news. We examine the presence and determinants of CFO asymmetric timeliness in Australia, where substantial differences in reporting requirements of cash flow components, in characteristics of listed companies and in the degree of conservative financial reporting produce contrasting findings to those in the United States. We find supportive evidence for the novel ‘sticky cost behaviour’ explanation and also the product‐pricing strategy, but not the life cycle hypothesis. These findings are useful for investors and analysts concerned with forecasting the future values of companies.
Original languageEnglish
Pages (from-to)587-627
Number of pages41
JournalAccounting & Finance
Issue numberS1
Early online date8 Mar 2018
Publication statusPublished - 1 Apr 2020


  • Asymmetric timeliness
  • Cost stickiness
  • Firm life cycle
  • Operating cash flow


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