• xmlui.mirage2.page-structure.header.title
    • français
    • English
  • Help
  • Login
  • Language 
    • Français
    • English
View Item 
  •   BIRD Home
  • DRM (UMR CNRS 7088)
  • DRM : Publications
  • View Item
  •   BIRD Home
  • DRM (UMR CNRS 7088)
  • DRM : Publications
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Browse

BIRDResearch centres & CollectionsBy Issue DateAuthorsTitlesTypeThis CollectionBy Issue DateAuthorsTitlesType

My Account

LoginRegister

Statistics

Most Popular ItemsStatistics by CountryMost Popular Authors
Thumbnail

Value Relevance of Summary Accounting Income Measures: Evidence from Major European Capital Markets

Lin, Stephen; Ramond, Olivier; Casta, Jean-François (2008), Value Relevance of Summary Accounting Income Measures: Evidence from Major European Capital Markets, 29ème congrès de l’AFC (Association Francophone de Comptabilité ), Association francophone de comptabilité, p. 60

View/Open
Casta_ramond_lin.pdf (2.909Mb)
Type
Communication / Conférence
Date
2008
Conference country
FRANCE
Book title
29ème congrès de l’AFC (Association Francophone de Comptabilité )
Publisher
Association francophone de comptabilité
Pages
60
Metadata
Show full item record
Author(s)
Lin, Stephen

Ramond, Olivier
Dauphine Recherches en Management [DRM]
Casta, Jean-François
Dauphine Recherches en Management [DRM]
Abstract (EN)
This study investigates the extent to which three key summary accounting income figures,namely operating income (OPI), net income (NI) and comprehensive income (CI), providevalue-relevant information to investors in major EU capital markets. Using a large sampleover the pre-IAS-compliance period (1992-2004), we find that all these three figures arestatistically associated with share returns in any of the countries under analysis althoughdisparities in the degree of ‘usefulness’ appear across samples. Our main results are thenthreefold. We first provide evidence that CI is less value-relevant than both NI and OPI in allthe sample countries. Second, our results show that aggregate OCI is value-relevant andgenerally provides incremental price-relevant information beyond NI. This finding is ratherdifferent from the existing US literature that suggests OCI is usually not value-relevantespecially when not separately disclosed in financial statements. Finally, considering earlyadoption firms, we find that increased transparency on reporting OCI as required by the UKFRS3 and US SFAS130 standards may have warranted a stronger statistical associationbetween share returns and CI. This last finding therefore strongly supports the ideologyunderlying the IASB/FASB ‘Performance Reporting’ joint project, and provides evidencesupporting Beaver’s (1981) psychology-based financial reporting theory.
Subjects / Keywords
Value-relevance; performance reporting; other comprehensive income; comprehensive income; summary accounting income; IASB / FASB joint project
JEL
G31 - Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
G12 - Asset Pricing; Trading Volume; Bond Interest Rates
M41 - Accounting

Related items

Showing items related by title and author.

  • Thumbnail
    Value relevance of comprehensive income and its components: Evidence from major European capital markets 
    Casta, Jean-François; Ramond, Olivier; Lin, Stephen (2007) Communication / Conférence
  • Thumbnail
    On the Relevance of Reporting Comprehensive Income under IAS / IFRS: Insight from Major European Capital Markets 
    Casta, Jean-François; Ramond, Olivier; Lin, Steve; Batsch, Laurent (2007) Communication / Conférence
  • Thumbnail
    Economic Properties of Recognized Intangibles under Domestic Accounting Standards: Evidence from European Capital Markets 
    Escaffre, Lionel; Ramond, Olivier; Casta, Jean-François (2008) Communication / Conférence
  • Thumbnail
    Intangible investments & accounting numbers : usefulness, informativeness, and relevance on the European stock markets 
    Casta, Jean-François; Ramond, Olivier; Escaffre, Lionel (2007) Communication / Conférence
  • Thumbnail
    Intangible investments & accounting numbers: usefulness, informativeness, and relevance on the European stock markets 
    Casta, Jean-François; Ramond, Olivier; Escaffre, Lionel (2005) Communication / Conférence
Dauphine PSL Bibliothèque logo
Place du Maréchal de Lattre de Tassigny 75775 Paris Cedex 16
Phone: 01 44 05 40 94
Contact
Dauphine PSL logoEQUIS logoCreative Commons logo