The Relationship Between Cash Flow and Income Smoothing in Healthy Companies with Insolvent Companies and the Uncertainty as Altman Bankruptcy Model Using Artificial Neural Networks

Investors, credit providers and financial analysts interested in more information about smoothing in the investee company to have, especially if this information is based on decisions affecting them. Research findings indicate that many investors in making investments, profit smoothly and prefer low volatility. In this context, managers are trying to profit and growth rates show it smoothly. This study examines the effect of operating cash flow in public listed companies (Salem, bankrupt and uncertainty in the region, according to Altman bankruptcy model) on the Stock Exchange on earnings smoothing. Lintner model used to smooth income. A careful study of literature, five hypotheses and sample consists of 164 companies for the period 1389- 1393 five-year and using multiple linear regression analysis is located.The results indicate that a significant positive relationship between income and income smoothing exists. But between operating cash flow and income smoothing significant positive relationship was not found. As well as between income compared with the previous year and operating cash flow smoothing and there is a significant positive relationship. The results indicate that a significant positive relationship between income and income smoothing exists. But between free cash flow and income smoothing significant positive relationship was not found. As well as between income compared to the prior year free cash flow and income smoothing and there is a significant positive relationship.