Univrsity Of Tehran Press Accounting and Auditing Review 2645-8020 13 1 2006 05 22 - - 18492 FA Journal Article 1970 01 01 This paper examines the relative and incremental information content of cash flows and accruals in Iranian capital market. For this purpose, we examined the relationship between stock returns and earnings and its components for 400 firm-years in Tehran Stock Exchange during 2000-2003. The results show that earnings have greater information content than cash flows from operation. Besides, earnings have incremental information content beyond cash flows from operation. Accruals have incremental information content beyond cash flows from operation too. When we separated accruals to discretionary and nondiscretionary parts, these results were approved. Moreover, the results show that discretionary accruals have incremental information content beyond nondiscretionary accruals. This paper examines the relative and incremental information content of cash flows and accruals in Iranian capital market. For this purpose, we examined the relationship between stock returns and earnings and its components for 400 firm-years in Tehran Stock Exchange during 2000-2003. The results show that earnings have greater information content than cash flows from operation. Besides, earnings have incremental information content beyond cash flows from operation. Accruals have incremental information content beyond cash flows from operation too. When we separated accruals to discretionary and nondiscretionary parts, these results were approved. Moreover, the results show that discretionary accruals have incremental information content beyond nondiscretionary accruals. https://acctgrev.ut.ac.ir/article_18492_ef368fb4389e4e2688fc50c5d2c3fe4f.pdf