This paper investigates the association between components of income statement, components of cash flow statement and stock returns. A sample of 65 companies listed in Tehran Stock Exchange for the time period of 2003-2005. Regression analysis is conducted to test the research hypotheses. Results show that among components of income statements, the net income (loss), and among components of cash flow statement, cash flows from investing activities have a strong relationship with stock returns. However, the paper results show that there is a stronger association between stock returns and components of income statements relative to components of cash flows statement.
