IDEAS home Printed from https://ideas.repec.org/a/arp/tjssrr/2019p1312-1320.html
   My bibliography  Save this article

The Impact of Comprehensive Income on Owners Equity at the Jordanian Commercial Banks, Analytical Study

Author

Listed:
  • Mohammad Ali Al Hayek

    (Accounting Department, Al al-Bayt University, Mafraq, Jordan)

  • Abdel-Rahman kh. El-Dalabeeh *

    (Accounting Department, Al al-Bayt University, Mafraq, Jordan)

Abstract

The study aimed to examine the impact of comprehensive income statement’s items on the owners equity of Jordanian commercial banks, and to achieve this objective researcher conducted an analytical study by adopting the descriptive and analytical approach, and used the statistical method to analyze the study data represented in the actual data, which were taken from the financial statements of the (13) Jordanian commercial banks for the period (2008-2017). The study found a statistically significant impact of comprehensive income statement’s items on the owners equity of Jordanian commercial banks, and in regard to the secondary hypotheses the study results showed nonexistence of statistically significant impact of net income on the owners equity of Jordanian commercial banks, but found a statistically significant impact for each of the other comprehensive income and comprehensive net income on the owners equity of Jordanian commercial banks. One of the main recommendations of the study will be to increase the attention to comprehensive income, due to its impact on the owners equity, and to conduct additional studies about the impact and the relationship of study variables at the public shareholding companies, in other sectors.

Suggested Citation

  • Mohammad Ali Al Hayek & Abdel-Rahman kh. El-Dalabeeh *, 2019. "The Impact of Comprehensive Income on Owners Equity at the Jordanian Commercial Banks, Analytical Study," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 5(9), pages 1312-1320, 09-2019.
    • Handle: RePEc:arp:tjssrr:2019:p:1312-1320
    as

    Download full text from publisher

    File URL: https://www.arpgweb.com/pdf-files/jssr5(9)1312-1320.pdf
    Download Restriction: no
    File URL: https://www.arpgweb.com/journal/7/archive/09-2019/9/5
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Olivier J. Ramond & Jean-François Casta & Stephen W.J. Lin, 2007. "Value-relevance of comprehensive income and its components under IFRS: Insights from major European capital markets," Post-Print halshs-00165186, HAL.
    2. repec:dau:papers:123456789/2814 is not listed on IDEAS
    3. Dhaliwal, Dan & Subramanyam, K. R. & Trezevant, Robert, 1999. "Is comprehensive income superior to net income as a measure of firm performance?1," Journal of Accounting and Economics, Elsevier, vol. 26(1-3), pages 43-67, January.
    4. Steven F. Cahan & Stephen M. Courtenay & Paul L. Gronnewoller & David R. Upton, 2000. "Value Relevance of Mandated Comprehensive Income Disclosures," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 27(9&10), pages 1273-1302.
    5. Macintosh, Norman B. & Shearer, Teri & Thornton, Daniel B. & Welker, Michael, 2000. "Accounting as simulacrum and hyperreality: perspectives on income and capital," Accounting, Organizations and Society, Elsevier, vol. 25(1), pages 13-50, January.
    6. Alain Devalle & Riccardo Magarini, 2012. "Assessing the value relevance of total comprehensive income under IFRS: an empirical evidence from European stock exchanges," International Journal of Accounting, Auditing and Performance Evaluation, Inderscience Enterprises Ltd, vol. 8(1), pages 43-68.
    7. Olivier J. Ramond & Jean-François Casta & Stephen W.J. Lin, 2007. "Value-relevance of reporting comprehensive income under international GAAPs: Insights from major European financial markets," Post-Print halshs-00170498, HAL.
    8. Kanagaretnam, Kiridaran & Mathieu, Robert & Shehata, Mohamed, 2009. "Usefulness of comprehensive income reporting in Canada," Journal of Accounting and Public Policy, Elsevier, vol. 28(4), pages 349-365, July.
    9. Victor Munteanu & Alice Tinta & Lavinia Copcinschi & Simina Vera & Anda Laceanu & Carmen Luschi, 2015. "The Comprehensive Income – A New Dimension in Measuring the Financial Results by Applying IFRS," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 7(1), pages 33-37, March.
    10. repec:dau:papers:123456789/6780 is not listed on IDEAS
    11. HeeJin Park, 2018. "Market Reaction to Other Comprehensive Income," Sustainability, MDPI, vol. 10(6), pages 1-14, June.
    12. Steven F. Cahan & Stephen M. Courtenay & Paul L. Gronnewoller & David R. Upton, 2000. "Value Relevance of Mandated Comprehensive Income Disclosures," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 27(9‐10), pages 1233-1265, November.
    13. Jerry G. Kreuze & Gale E. Newell, 1999. "The Relationship of Net Income to Comprehensive Income: An Analysis of Fortune 500 Companies," American Journal of Business, Emerald Group Publishing, vol. 14(1), pages 53-58.
    14. Steven F. Cahan & Stephen M. Courtenay & Paul L. Gronnewoller & David R. Upton, 2000. "Value Relevance of Mandated Comprehensive Income Disclosures," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 27(9‐10), pages 1233-1265, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yiting Cao & Qi (Flora) Dong, 2020. "Does reporting position affect the pricing of the volatility of comprehensive income?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 47(9-10), pages 1113-1150, October.
    2. Patrizia Gazzola & Stefano Amelio, 2014. "Roe in Turbulent Time," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 62(2), pages 347-353.
    3. Inês Pinto & Ana Isabel Morais, 2022. "Classification of Equity Instruments under IFRS 9: Determinants and Consequences," Australian Accounting Review, CPA Australia, vol. 32(4), pages 411-426, December.
    4. Black, Dirk & Neururer, Thaddeus, 2024. "Do analysts provide information about other comprehensive income in book value forecasts for financial firms?," Advances in accounting, Elsevier, vol. 64(C).
    5. Murad Harasheh & Federica Doni & Maria Vittoria Franceschelli & Andrea Amaduzzi, 2021. "The value relevance of Other Comprehensive Income: Extensive evidence from Europe," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 3835-3851, July.
    6. Pier Luigi Marchini & Carlotta D'Este, 2015. "Comprehensive Income: which potential effects on firms? performance evaluation and users? decision process?," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2015(2), pages 55-94.
    7. John M. Barrios & Marco Fasan & Daniele Macciocchi, 2013. "CEO turnover, earnings management and value relevance. A theoretical analysis on the Italian context," Working Papers 11, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.
    8. Karola Bastini & Rainer Kasperzak, 2013. "Erkenntnisfortschritt in der Rechnungslegung durch experimentelle Forschung? — Diskussion methodischer Grundsatzfragen anhand der Entscheidungsnützlichkeit des Performance Reporting," Schmalenbach Journal of Business Research, Springer, vol. 65(7), pages 622-660, December.
    9. Stefano AMELIO, 2016. "The Connection between IAS/IFRS and Social Responsibility," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 4(1), pages 7-30, March.
    10. Abderrahmane Djaballah & Anne Fortin, 2021. "Value Relevance of Comprehensive Income for the Canadian Market," Accounting Perspectives, John Wiley & Sons, vol. 20(1), pages 49-77, March.
    11. Shuto, Akinobu & Otomasa, Shota & Suda, Kazuyuki, 2009. "The relative and incremental explanatory powers of dirty surplus items for debt interest rate," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 18(2), pages 119-131.
    12. Chikashi Tsuji, 2013. "An Investigation of Comprehensive Income and Firm Performance: The Case of the Electric Appliances Industry of the Tokyo Stock Exchange," Accounting and Finance Research, Sciedu Press, vol. 2(2), pages 1-29, May.
    13. Czajor Przemysław & Druszcz Piotr & Hendryk Michał, 2019. "Usefulness of Comprehensive Income Statement – Preliminary Study on the Example of Companies from the Wig30 Index," Financial Sciences. Nauki o Finansach, Sciendo, vol. 24(4), pages 10-26, December.
    14. HeeJin Park, 2018. "Market Reaction to Other Comprehensive Income," Sustainability, MDPI, vol. 10(6), pages 1-14, June.
    15. Adul Aziz Saymeh & Ayman Mansour Khalaf ALkhazaleh* & Eman Marwan Musallam, 2019. "The Impact of Other Comprehensive Income Items on Financial Performance: Case of Jordanian Commercial Banks," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 5(4), pages 881-893, 04-2019.
    16. Igor Goncharov & Allan Hodgson, 2008. "Comprehensive Income In Europe: Valuation, Prediction And Conservative Issues," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(10), pages 1-1.
    17. Allan Hodgson & Mark Russell, 2014. "Comprehending Comprehensive Income," Australian Accounting Review, CPA Australia, vol. 24(2), pages 100-110, June.
    18. Schaberl, Philipp D. & Victoravich, Lisa M., 2015. "Reporting location and the value relevance of accounting information: The case of other comprehensive income," Advances in accounting, Elsevier, vol. 31(2), pages 239-246.
    19. Aliyu Baba Usman & Aliyu Baba Usman & Noor Afza Binti Amran & Hasnah Binti Shaari, 2016. "The Value Relevance of Comprehensive Income in Nigerian: A Pilot Test," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 793-797.
    20. Melik Ertugrul & Ali Coskun, 2019. "DoesS Recycling Contribute To Accounting Quality," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 33(2), pages 1-18.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arp:tjssrr:2019:p:1312-1320. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Managing Editor (email available below). General contact details of provider: http://arpgweb.com/?ic=journal&journal=7&info=aims .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.