Value Relevance of Comprehensive Income

45 Pages Posted: 7 Jan 2014

See all articles by Shahwali Khan

Shahwali Khan

Institute of Management Sciences - Peshawar

Michael E. Bradbury

Massey University

Stephen M. Courtenay

Massey University

Date Written: January 6, 2014

Abstract

We investigate the value relevance of comprehensive income its components for a sample of 92 New Zealand Firms over the period 2003-2010. The change in assets revaluation reserve and the change in fair value of available-for-sale securities are associated with firm performance as summarized by stock price and returns. We also find a stronger association of aggregate comprehensive income with stock price and market returns compared to net income.

Keywords: Value Relevance, Comprehensive Income, Other Comprehensive Income, Asset Revaluations

JEL Classification: G12, M40, M41

Suggested Citation

Khan, Shahwali and Bradbury, Michael E. and Courtenay, Stephen M., Value Relevance of Comprehensive Income (January 6, 2014). 2014 Financial Markets & Corporate Governance Conference. Available at SSRN: https://ssrn.com/abstract=2375508 or http://dx.doi.org/10.2139/ssrn.2375508

Shahwali Khan

Institute of Management Sciences - Peshawar ( email )

Sector E-5, Hayatabad, Phase VII
Hayatabad
Peshawar, KPK 25000
Pakistan

Michael E. Bradbury (Contact Author)

Massey University ( email )

School of Accountancy
Private Bag 102 904
Auckland
New Zealand
64 9 414 0800 (Phone)
64 9 441 8133 (Fax)

Stephen M. Courtenay

Massey University ( email )

School of Accountancy
Massey University
Auckland, Auckland
New Zealand
+64 4140800 x9209 (Phone)

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