COMPARING THE IMPACT OF THE NET INCOME VERSUS THE COMPREHENSIVE INCOME OVER THE SHARE PRICE FOR COMPANIES LISTED ON THE BUCHAREST STOCK EXCHANGE

Ioana Pop
Additional contact information
Ioana Pop: Lucian Blaga University of Sibiu, Romania

Studies in Business and Economics, 2020, vol. 15, issue 3, 88-104

Abstract: As a consequence of adopting the IFRS in Romania, starting with 2012, for companies whose securities are admitted for trading on a regulated market, financial reporting demarches include ascertaining the comprehensive income in addition to the net income. The present paper aims at investigating how the share price evolves considering the level of the comprehensive income as compared to the reported net income, in a multiannual empirical study implying panel data analysis through Pooled OLS, Fixed Effects and Random Effects models processed through EViews. Furthermore, the informational and decisional utility of the two main forms of disclosed accounting results (the net income and of the comprehensive income) is examined through a sample of 57 notable companies listed on the Bucharest Stock Exchange. Admittedly, the empirical study findings substantiate the fact that both results categories are significantly associated with the evolution of the share price, rendering a heightened value relevance for the Romanian capital market investors. Moreover, the identified results indicate that from an investor standpoint, the comprehensive income does not bear a greater significance than the net income, the two having comparable impacts over the share price.

Keywords: comprehensive income; net income; IFRS; Bucharest Stock Exchange; share price (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://eccsf.ulbsibiu.ro/RePEc/blg/journl/15307pop.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:blg:journl:v:15:y:2020:i:3:p:88-104

Access Statistics for this article

More articles in Studies in Business and Economics from Lucian Blaga University of Sibiu, Faculty of Economic Sciences Lucian Blaga University of Sibiu, Faculty of Economic Sciences Dumbravii Avenue, No 17, postal code 550324, Sibiu, Romania. Contact information at EDIRC.
Bibliographic data for series maintained by Mihaela Herciu ().