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

2019 ◽  
pp. 1312-1320
Author(s):  
Mohammad Ali Al Hayek ◽  
Abdel-Rahman kh. El-Dalabeeh
Keyword(s):  
Commercial Banks ◽  
Analytical Study ◽  
Study Data ◽  
Net Income ◽  
The Public ◽  
Comprehensive Income ◽  
Study Results ◽  
Other Comprehensive Income ◽  
Relationship Of ◽  
The Impact

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.

scholarly journals The Impact of Other Comprehensive Income Items on Financial Performance: Case of Jordanian Commercial Banks

2019 ◽  
pp. 1216-1228
Author(s):  
Adul Aziz Saymeh ◽  
Ayman Mansour Khalaf ALkhazaleh ◽  
Eman Marwan Musallam
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Net Income ◽  
Return On Assets ◽  
Return On Equity ◽  
Comprehensive Income ◽  
Dependent Variables ◽  
Other Comprehensive Income ◽  
Independent Variable ◽  
The Impact

This study aims to determine the effect of the independent variable other comprehensive income on the dependent variables represented by the financial performance of commercial banks. Researcher has studied the case of Jordanian Commercial Banks during the period 2012 to 2017. The study sample consists of 13 Jordanian commercial banks. The study independent variable was given by the quotient of other comprehensive income on net income. The ratios: financial performance by return on assets, and return on equity were the two dependent variables. Study hypotheses were tested by the simple regression equation and T- test. It was found that there was a statistically significant effect of other comprehensive income on the financial performance as measured by the return on assets and return on equity. This significance can be attributed to the increasing weight of other comprehensive income items which makes the value of other comprehensive income an indicator of profitability and efficiency of banks and means of maximizing their wealth. It is recommended that Amman Stock Exchange, Securities Commission and the Companies Control Department, to urge the companies listed on ASE to increase the awareness of companies’ management about the importance of other comprehensive income concept.

scholarly journals Kemampuan Net Income, Other Comprehensive Income terhadap Return dengan Moderasi Kualitas Laba (Studi pada Perusahaan Bank Umum di Bursa Efek Indonesia Periode 2013-2016)

2019 ◽  
Vol 6 (01) ◽  
Author(s):  
Yohana Pala Juni Damanik
Keyword(s):  
Sample Size ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Secondary Data ◽  
Net Income ◽  
The Past ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Future Income

ABSTRACT This research is to test and analyze the ability of net income and other comprehensive income to future profit with moderation of profit quality of commercial Banks listed on Indonesia stock exchange. This study uses secondary data. The research sample is a mommercial Bank listed on the Indonesia stock exchange in the period 2013 to 2016. The sample size is 22. The results show that net income past influential and significant to future income, other comprehensive income past influential and significant to future profit, net income year 2015 has no effect and not significant to return 2016, other comprehensive income 2015 influential and significant to return 2016, net income interaction of the past and quality of profit influential, significant and quasi-moderate to future profit, other comprehensive income interaction past and quality of earnings of the past has no significant and insignificant impact on future profit, net income 2015 interaction and 2015 profit quality effect, significant and quasi-moderate to return, other past comprehensive income interactions and past profit quality have a significant, significant and aerated effect on return. ABSTRAK Penelitian ini adalah menguji dan menganalisis kemampuan net income dan other comprehensive income terhadap return dengan moderasi kualitas laba bank umum yang terdaftar di Bursa Efek Indonesia. Penelitian ini menggunakan data sekunder. Sampel penelitian adalah bank umum yang terdaftar di Bursa Efek Indonesia pada periode 2013 sampai 2016. Jumlah sampel adalah 22. Hasil penelitian menunjukkan bahwa net income masa lalu berpengaruh dan signifikan terhadap return, other comprehensive income masa lalu berpengaruh dan signifikan terhadap return, net income tahun 2015 tidak berpengaruh dan tidak signifikan terhadap return 2016, other comprehensive income 2015 berpengaruh dan signifikan terhadap return 2016, interaksi net income masa lalu dan kualitas laba berpengaruh, signifikan dan bermoderasi semu terhadap return, interaksi other comprehensive income masa lalu dan kualitas laba masa lalu tidak berpengaruh dan tidak signifikan terhadap return, interaksi net income 2015 dan kualitas laba 2015 berpengaruh, signifikan dan bermoderasi semu terhadap return, interaksi other comprehensive income masa lalu dan kualitas laba masa lalu berpengaruh, signifikan dan bermoderasi semu terhadap return.

scholarly journals Kemampuan Net Income, Other Comprehensive Income terhadap Return dengan Moderasi Kualitas Laba

2019 ◽  
Vol 6 (01) ◽  
Author(s):  
Yohana Pala Juni Damanik
Keyword(s):  
Commercial Banks ◽  
Stock Exchange ◽  
Secondary Data ◽  
Jel Classification ◽  
Net Income ◽  
The Past ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Future Income

ABSTRACT This research is to test and analyze the ability of net income and other comprehensive income to future profit with moderation of profit quality of commercial Banks listed on Indonesia stock exchange. This study uses secondary data. The research sample is a mommercial Bank listed on the Indonesia stock exchange in the period 2013 to 2016. The sample size is 22. The results show that net income past influential and significant to future income, other comprehensive income past influential and significant to future profit, net income year 2015 has no effect and not significant to return 2016, other comprehensive income 2015 influential and significant to return 2016, net income interaction of the past and quality of profit influential, significant and quasi-moderate to future profit, other comprehensive income interaction past and quality of earnings of the past has no significant and insignificant impact on future profit, net income 2015 interaction and 2015 profit quality effect, significant and quasi-moderate to return, other past comprehensive income interactions and past profit quality have a significant, significant and aerated effect on return. ABSTRAK Penelitian ini adalah menguji dan menganalisis kemampuan net income dan other comprehensive income terhadap return dengan moderasi kualitas laba bank umum yang terdaftar di Bursa Efek Indonesia. Penelitian ini menggunakan data sekunder. Sampel penelitian adalah bank umum yang terdaftar di Bursa Efek Indonesia pada periode 2013 sampai 2016. Jumlah sampel adalah 22. Hasil penelitian menunjukkan bahwa net income masa lalu berpengaruh dan signifikan terhadap return, other comprehensive income masa lalu berpengaruh dan signifikan terhadap return, net income tahun 2015 tidak berpengaruh dan tidak signifikan terhadap return 2016, other comprehensive income 2015 berpengaruh dan signifikan terhadap return 2016, interaksi net income masa lalu dan kualitas laba berpengaruh, signifikan dan bermoderasi semu terhadap return, interaksi other comprehensive income masa lalu dan kualitas laba masa lalu tidak berpengaruh dan tidak signifikan terhadap return, interaksi net income 2015 dan kualitas laba 2015 berpengaruh, signifikan dan bermoderasi semu terhadap return, interaksi other comprehensive income masa lalu dan kualitas laba masa lalu berpengaruh, signifikan dan bermoderasi semu terhadap return. JEL Classification: M41, M48

Comprehensive Income: which potential effects on firms' performance evaluation and users' decision process?

2016 ◽  
pp. 55-94
Author(s):  
Pier Luigi Marchini ◽  
Carlotta D'Este
Keyword(s):  
Performance Evaluation ◽  
Decision Process ◽  
Financial Analysts ◽  
Listed Companies ◽  
Financial Statement ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Gains And Losses ◽  
The Impact

The reporting of comprehensive income is becoming increasingly important. After the introduction of Other Comprehensive Income (OCI) reporting, as required by the 2007 IAS 1-revised, the IASB is currently seeking inputs from investors on the usefulness of unrealized gains and losses and on the role of comprehensive income. This circumstance is of particular relevance in code law countries, as local pre-IFRS accounting models influence financial statement preparers and users. This study aims at investigating the role played by unrealized gains and losses reporting on users' decision process, by examining the impact of OCI on the Italian listed companies RoE ratio and by surveying a sample of financial analysts, also content analysing their formal reports. The results show that the reporting of comprehensive income does not affect the financial statement users' decision process, although it statistically affects Italian listed entities' performance.

Income Diversification and Bank Efficiency in Vietnam

2017 ◽  
pp. 52-67
Author(s):  
Sang Nguyen Minh
Keyword(s):  
Regression Model ◽  
Commercial Banks ◽  
Banking System ◽  
Operational Efficiency ◽  
Commercial Banking ◽  
Tobit Regression ◽  
Income Diversification ◽  
Positive Effects ◽  
Study Results ◽  
The Impact

This study uses the DEA (Data Envelopment Analysis) method to estimate the technical efficiency index of 34 Vietnamese commercial banks in the period 2007-2015, and then it analyzes the impact of income diversification on the operational efficiency of Vietnamese commercial banks through a censored regression model - the Tobit regression model. Research results indicate that income diversification has positive effects on the operational efficiency of Vietnamese commercial banks in the research period. Based on study results, in this research some recommendations forpolicy are given to enhance the operational efficiency of Vietnam’s commercial banking system.

DİĞER KAPSAMLI GELİR KALEMLERİ İLE İŞLETMENİN PİYASA DEĞERİ ARASINDAKİ İLİŞKİ

2014 ◽  
Vol 1 (3) ◽  
pp. 269
Author(s):  
Serhan Gürkan ◽  
Yasemin Köse
Keyword(s):  
Financial Performance ◽  
Value Relevance ◽  
Net Income ◽  
Comprehensive Income ◽  
Income Statement ◽  
Other Comprehensive Income ◽  
The Difference ◽  
Gains And Losses

Other comprehensive income is the difference between net income as in the Income Statement and comprehensive income, and represents the certain gains and losses of the enterprise not recognized in the Profit or Loss Account. Value relevance of other comprehensive income is under discussion and considering other comprehensive income items all together might be misleading for financial performance. In the view of such information, discussing the value relevance of each other comprehensive income item, judgements are made.

Risk-Relevance of Fair-Value Income Measures for Commercial Banks

2006 ◽  
Vol 81 (2) ◽  
pp. 337-375 ◽  
Author(s):  
Leslie D. Hodder ◽  
Patrick E. Hopkins ◽  
James M. Wahlen
Keyword(s):  
Standard Deviation ◽  
Stock Returns ◽  
Commercial Banks ◽  
Fair Value ◽  
Net Income ◽  
Income Volatility ◽  
Expected Return ◽  
Market Pricing ◽  
Share Prices ◽  
Comprehensive Income

We investigate the risk relevance of the standard deviation of three performance measures: net income, comprehensive income, and a constructed measure of full-fair-value income for a sample of 202 U.S. commercial banks from 1996 to 2004. We find that, for the average sample bank, the volatility of full-fair-value income is more than three times that of comprehensive income and more than five times that of net income. We find that the incremental volatility in full-fair-value income (beyond the volatility of net income and comprehensive income) is positively related to marketmodel beta, the standard deviation in stock returns, and long-term interest-rate beta. Further, we predict and find that the incremental volatility in full-fair-value income (1) negatively moderates the relation between abnormal earnings and banks' share prices and (2) positively affects the expected return implicit in bank share prices. Our findings suggest full-fair-value income volatility reflects elements of risk that are not captured by volatility in net income or comprehensive income, and relates more closely to capital-market pricing of that risk than either net-income volatility or comprehensiveincome volatility.

scholarly journals Value relevance of accounting data and financial crisis in Europe: an empirical analysis

2012 ◽  
Vol 2 (2) ◽  
pp. 201 ◽  
Author(s):  
Alain Devalle
Keyword(s):  
Financial Crisis ◽  
Positive Impact ◽  
Value Relevance ◽  
Net Income ◽  
Accounting Data ◽  
Book Value ◽  
Crisis Period ◽  
Comprehensive Income ◽  
The Impact ◽  
The Relationship

This paper aims at verifying the relationship between book value and  market value for a four years period (2006-2009) in Europe, under IFRS. In particular, I used value relevance approach to measure whether net income or comprehensive income are more useful to understand the relationship between market data and financial data. Moreover, the paper analyzes the impact of financial crisis on the value relevance of accounting data. The examination period runs from a pre-crisis period (2006-2007) to an in-crisis period (2008-2009). Results shows that comprehensive income is more value relevant than net income. Furthermore, the financial crisis has a positive impact on value relevance.  

scholarly journals The Influence of the Quality of an Audit to Relationship Other Comprehensive Income (OCI) And Relevance of Value Accounting Information, And Asymmetry of Information (Study on Companies in Indonesia)

2017 ◽  
Vol 5 (1) ◽  
pp. 46-52
Author(s):  
Yurniwati Yurniwati ◽  
Amsal Djunid ◽  
Nini Sumarni ◽  
Ike Pranita
Keyword(s):  
Information Asymmetry ◽  
Value Relevance ◽  
Linear Regression Analysis ◽  
Accounting Information ◽  
Asymmetry Of Information ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Relationship Of ◽  
The Relationship

Objective - This study examines the influence of the quality of an audit to the relationship of Other Comprehensive Income (OCI) and Relevanceof Value Accounting Information, and Asymmetry of Information in Indonesia's companies. Methodology/Technique - This research uses secondary data obtained from the company's annual report in 2012 - 2014. A purposive sampling method is used to collect data and the analysis of the hypothesis was conducted usingmultiple linear regression analysis. Findings - The research has shown that Quality of Audit has a significant influence to the relationship of the OCI disclosure and Relevance of Value Accounting Information has a value of sig. 0.000, F calculate is 26.816 larger than F table 2.396 and adjusted R square 0.241. Novelty - The study looks at the disclosures of OCI component's role in the investors decision making and it increases value relevance of accounting information and reducing information asymmetry. Type of Paper - Empirical Keywords: Other Comprehensive Income (OCI); Relevance of Value Accounting Information; Information Asymmetry; Quality of Audit. JEL Classification: D82, M41, M42.

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