Does Income Smoothing Improve Earnings Informativeness? This paper investigates whether income smoothing improves the informativeness of earnings about future earnings and cash flows. Using a new approach, the study measures income smoothing as the negative correlation between a firm's change in discretionary accruals and its change in pre-managed income. The results show that firms with higher smoothing have more information in their stock price changes about future earnings. This finding is robust to various controls, including firm size, growth, future earnings variability, and private information search activities. The study uses the future earnings response coefficient (FERC) to measure the informativeness of earnings. The FERC reflects how much information about future earnings is captured in current stock prices. The results indicate that income smoothing enhances the FERC, suggesting that income smoothing improves the informativeness of past and current earnings about future earnings and cash flows. The study also finds that income smoothing enhances the relationship between current earnings and future earnings, indicating that income smoothing improves earnings persistence. Additionally, the study shows that income smoothing allows more information about future cash flows to be impounded in current stock prices. The study addresses potential concerns about omitted variables and measurement error, and finds that the results are robust to these factors. The findings suggest that income smoothing improves the informativeness of earnings about future earnings and cash flows, contributing to the literature on the information-vs-garbling debate in earnings management.Does Income Smoothing Improve Earnings Informativeness? This paper investigates whether income smoothing improves the informativeness of earnings about future earnings and cash flows. Using a new approach, the study measures income smoothing as the negative correlation between a firm's change in discretionary accruals and its change in pre-managed income. The results show that firms with higher smoothing have more information in their stock price changes about future earnings. This finding is robust to various controls, including firm size, growth, future earnings variability, and private information search activities. The study uses the future earnings response coefficient (FERC) to measure the informativeness of earnings. The FERC reflects how much information about future earnings is captured in current stock prices. The results indicate that income smoothing enhances the FERC, suggesting that income smoothing improves the informativeness of past and current earnings about future earnings and cash flows. The study also finds that income smoothing enhances the relationship between current earnings and future earnings, indicating that income smoothing improves earnings persistence. Additionally, the study shows that income smoothing allows more information about future cash flows to be impounded in current stock prices. The study addresses potential concerns about omitted variables and measurement error, and finds that the results are robust to these factors. The findings suggest that income smoothing improves the informativeness of earnings about future earnings and cash flows, contributing to the literature on the information-vs-garbling debate in earnings management.