This research investigates the persistence of the components of the changing in cash and accruals in prediction of future profits. In this research is disaggregated the changes in cash component of free cash flow into a normal part that moves the firm towards an estimated optimum level of cash holdings and an abnormal part that moves the firm away from the estimated optimum. The research hypotheses are tested by panel regression with fixed effect, which is used Eviews software to estimation, for period during 2008-2012. The results confirm the persistence of negative abnormal changing in cash is more than the persistence of positive abnormal changing in cash. Also, we found the persistence of the negative abnormal changing in cash is more than the persistence of the normal changing and the normal changing is more than the persistence of the abnormal changing in cash.
