The purpose of this research is to investigate empirically the relative usefulness of corporate accounting earnings and cash flows in explaining the value of securities. The usefulness of cash flows as opposed to accrual earnings is first addressed and then the relative usefulness of the components of accrual earnings, i.e. the cash flow component and the accrual adjustment component. The result indicates that neither annual cash flow nor working capital is as useful as annual accrual earnings in securities valuation. In addition, the results reveal that for most periods under examination, the accrual adjustment component is not priced higher than the cash flows component in a security valuation model.