Abstract
This paper aims to identify potential explanatory factors for the options followed by European listed entities in their cash flow statements, in the light of institutional theory, agency theory and positive accounting theory. Data from 121 entities listed on Euronext from 2018 to 2021 were assessed, totaling 484 consolidated annual reports. Based on logistic regression models, the findings indicated that interest, paid or received, is mostly classified as operating cash flow, dividends paid as financing cash flow and dividends received as operating or investment flow. There was also a preference for the indirect method for presenting operating cash flows. Finally, location, sector, size, debt and profitability were presented as explanatory factors for the options followed by the entities regarding cash-flows.
Keywords: cash flows, comparability, explanatory factors, exposure draft.