the comparison of incremental information content of cash and accrual ratios for financial performance evaluation of companies using data mining

â  using of prediction models is one of the methods of financial performance prediction. financial ratios are employed as predictive variable in prediction models. the main purpose of this study is to compare the incremental information content of accrual and cash ratios for prediction and evaluation of the financial performance of business entities by data mining models. in align with research purposes, two hypotheses have been developed. to test these hypotheses, a model of artificial intelligent and a model of statistical techniques are applied. sample of companies which were listed in tehran stock exchange between 2004 and 2009 was selected. for accurate evaluation of the financial performance, companies have been separated into two groups of weak and strong. prediction accuracy shows information content of applied ratios in the two models. the results of this study indicate that cash ratios in predicting strong financial performance and accrual ratios in predicting weak financial performance have more incremental information content in two models. â