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dc.contributor.authorCasta, Jean-François
dc.contributor.authorRamond, Olivier
dc.contributor.authorLin, Stephen
dc.date.accessioned2010-01-07T10:26:02Z
dc.date.available2010-01-07T10:26:02Z
dc.date.issued2007
dc.identifier.urihttps://basepub.dauphine.fr/handle/123456789/2814
dc.descriptionCe document est également paru dans la série Working Papers de la Chaire Finance d'entreprise Dauphine - FBF, n° 2009-9
dc.language.isoenen
dc.subjectperformance reportingen
dc.subjectother comprehensive incomeen
dc.subjectcomprehensive incomeen
dc.subjectValue-relevanceen
dc.subject.ddc657en
dc.subject.classificationjelM41en
dc.subject.classificationjelG12en
dc.subject.classificationjelG31en
dc.titleValue relevance of comprehensive income and its components: Evidence from major European capital marketsen
dc.typeCommunication / Conférence
dc.contributor.editoruniversityotherSchool of Accounting, College of Business Administration, Florida International University;États-Unis
dc.description.abstractenThis study investigates the extent to which three key summary accounting income figures, namely operating income, net income and comprehensive income, provide value-relevant information to investors in Germany, France, Italy, Spain and the UK. Using a large sample over the pre-IAS-compliance period 1992-2004, we find that all these three accounting income measures are statistically associated with share returns in any of the countries under analysis although our results show some disparities in the degree of ‘usefulness’ across country samples. Our main results are then threefold. We first provide evidence that comprehensive income is less value-relevant than both the bottom-line and operating income figures in all the sample countries. Second, our results show that aggregate other comprehensive income (or dirty surplus flow) is value-relevant and provides incremental price-relevant information beyond net income in most of the sample countries. This finding is rather different from the existing literature based in the US and UK that suggests other comprehensive income is generally not value-relevant especially when it is not separately disclosed in financial statements. Finally, we find that increased transparency on reporting other comprehensive income in financial statements as required by the UK (FRS3) and US (SFAS130) accounting standards may have warranted a stronger statistical association between firm share returns and comprehensive income. This last finding therefore strongly supports the ideology underlying the IASB/FASB joint project on ‘Performance Reporting’, and also provides evidence supporting Beaver’s (1981) and Hirst and Hopkins’ (1998) psychology-based financial reporting theory.en
dc.identifier.citationpages57en
dc.description.sponsorshipprivateouien
dc.subject.ddclabelContrôle de gestion Comptabilitéen
dc.relation.conftitleEuroplace Institute of Finance - 5th International Financial Research Forumen
dc.relation.confdate2007-06
dc.relation.confcityParisen
dc.relation.confcountryFranceen


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