IDEAS home Printed from https://ideas.repec.org/a/bla/jbfnac/v27y2000i9-10p1233-1265b.html
   My bibliography  Save this article

Value Relevance of Mandated Comprehensive Income Disclosures

Author

Listed:
  • Steven F. Cahan
  • Stephen M. Courtenay
  • Paul L. Gronnewoller
  • David R. Upton

Abstract

This study provides some market based evidence on the usefulness of comprehensive income disclosures in a Statement of Changes in Equity (SCE). Using a sample of listed New Zealand firms, we find no evidence that separate disclosure of the comprehensive income items provides any value relevant information above and beyond the aggregate comprehensive income figure. Likewise, in the post‐SCE period, we find no evidence of an increase in the incremental value relevance of the comprehensive income items over net income. While our results are sensitive to outliers, they suggest that standards requiring disclosure of a SCE may not be necessary.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:jbfnac:v:27:y:2000:i:9-10:p:1233-1265:b
    DOI: 10.1111/1468-5957.00356
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1468-5957.00356
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1468-5957.00356?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sushma Vishnani & Nityanand Deva & Dheeraj Misra, 2024. "Value Relevance of Comprehensive Income reported as per IFRS-converged Indian Accounting Standards," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 31(3), pages 453-472, September.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. Durocher, Sylvain & Picard, Claire-France & Dugal, Léa, 2024. "Giving sense to and making sense of OCI: When each component makes sense, but the whole does not," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 99(C).
    9. Clout, Victoria J. & Willett, Roger J., 2016. "Earnings in firm valuation and their value relevance," Journal of Contemporary Accounting and Economics, Elsevier, vol. 12(3), pages 223-240.
    10. 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.
    11. 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).
    12. 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.
    13. 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.
    14. 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.

    More about this item

    Statistics

    Access and download statistics

    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:bla:jbfnac:v:27:y:2000:i:9-10:p:1233-1265:b. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0306-686X .

    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.