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2. Master Thesis / Tesis Master
3. Faculty of Economy and Management / Fakulti Ekonomi dan Pengurusan

Title:	Value relevance of other comprehensive income
Authors:	Maryam Yousef Nejad (P64537)
Supervisor:	Zaini Embong, Dr.
Keywords:	Financial statements Comprehensive income Accounting
Issue Date:	Oct-2015
Description:	The introduction of the Statement of Comprehensive Income is intended to enhance the informativeness of financial statements. Income measured on a comprehensive approach indicates a firm's performance better than other summary income measures because it includes all changes in the net assets of a firm during a period from operating and non-operating sources. Financial information is considered useful or value relevant to investors if it is associated with market values such as share prices and returns. Changes in share prices around the time of financial information disclosure, indicates that the information is relevant and useful for investors' decision making. However value relevance studies have thus far provided mixed evidence. Studies also found that fair value reporting has a significant impact on the value relevance of other comprehensive income. Additionally, most studies on value relevance of other comprehensive income focused on developed countries where the capital market is more efficient. In these settings due to the existence of active market, fair valuation of assets may not pose a major problem. However more studies are needed to better understand the value relevance of such items especially in developing countries which have less efficient market. In Malaysia the mandatory reporting of comprehensive income by all listed firms based on the requirement of FRS101, coincides with the adoption of FRS139 the standard for financial instrument. Thus, Malaysia provides an interesting setting to investigate whether other comprehensive income and its components are value relevant. Additionally the relevance of these values are expected to vary between firms in the financial and non-financial industry, taking into consideration the effect of FRS139. In order to fulfill these objectives, this study hypothesized that other comprehensive income and its components are associated with share price, and this relevancy is affected by type of industries. These hypotheses were empirically examined using a sample of 1,419 firm years observations from 2011 to 2013, of firms listed on the Main Market of Bursa Malaysia. The results of Panel Analysis, indicate that type of industries moderate the value relevance of other comprehensive and its components. These results remain robust after additional analyses. This study produced additional evidence of value relevance of other comprehensive income in a developing country. The results indicate that the move towards a more comprehensive income reporting through the preparation of the Statement of Comprehensive Income results in more informative financial reporting.,Master/Sarjana
Pages:	117
Call Number:	HF5626.N435 2015 tesis
Publisher:	UKM, Bangi
Appears in Collections:	Faculty of Economy and Management / Fakulti Ekonomi dan Pengurusan

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