The value relevance of components of other comprehensive income when net income is disaggregated

Taisier A. Zoubi; Feras Salama; Mahmud Hossain; Yass A. Alkafaji

doi:10.1142/S0219091516500272

The value relevance of components of other comprehensive income when net income is disaggregated

Taisier A. Zoubi
, Feras Salama
, Mahmud Hossain^*
, Yass A. Alkafaji

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

3 Scopus citations

Abstract

The purpose of this study is to examine the equity pricing of other comprehensive income when earnings are disaggregated into several components. Our findings indicate that other comprehensive income can better explain variation in stock returns when net income is reported in a disaggregated form. Additionally, we find that disaggregating both net income and other comprehensive income can explain more of the variation in the stock returns than the two summary components of comprehensive income. Our results survive a series of robustness checks.

Original language	English
Article number	1650027
Journal	Review of Pacific Basin Financial Markets and Policies
Volume	19
Issue number	4
DOIs	https://doi.org/10.1142/S0219091516500272
State	Published - 1 Dec 2016
Externally published	Yes

Bibliographical note

Publisher Copyright:
© 2016 World Scientific Publishing Co.

Keywords

Net income
Other comprehensive income
SFAS 130
Value relevance

ASJC Scopus subject areas

Finance
Economics and Econometrics

Access to Document

10.1142/S0219091516500272

Cite this

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title = "The value relevance of components of other comprehensive income when net income is disaggregated",

abstract = "The purpose of this study is to examine the equity pricing of other comprehensive income when earnings are disaggregated into several components. Our findings indicate that other comprehensive income can better explain variation in stock returns when net income is reported in a disaggregated form. Additionally, we find that disaggregating both net income and other comprehensive income can explain more of the variation in the stock returns than the two summary components of comprehensive income. Our results survive a series of robustness checks.",

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AU - Zoubi, Taisier A.

AU - Salama, Feras

AU - Hossain, Mahmud

AU - Alkafaji, Yass A.

PY - 2016/12/1

Y1 - 2016/12/1

N2 - The purpose of this study is to examine the equity pricing of other comprehensive income when earnings are disaggregated into several components. Our findings indicate that other comprehensive income can better explain variation in stock returns when net income is reported in a disaggregated form. Additionally, we find that disaggregating both net income and other comprehensive income can explain more of the variation in the stock returns than the two summary components of comprehensive income. Our results survive a series of robustness checks.

AB - The purpose of this study is to examine the equity pricing of other comprehensive income when earnings are disaggregated into several components. Our findings indicate that other comprehensive income can better explain variation in stock returns when net income is reported in a disaggregated form. Additionally, we find that disaggregating both net income and other comprehensive income can explain more of the variation in the stock returns than the two summary components of comprehensive income. Our results survive a series of robustness checks.

KW - Net income

KW - Other comprehensive income

KW - SFAS 130

KW - Value relevance

UR - https://www.scopus.com/pages/publications/85011928582

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M1 - 1650027

ER -

The value relevance of components of other comprehensive income when net income is disaggregated

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

Access to Document

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Cite this