The Enterprise Comprehensive Income Accounting Information Relevance Research

This paper based on data of the2010annual financial statements from Shanghai A-share listedcompanies, by establishing the linear price model to empirical investigates the vale-relevance ofcomprehensive income. This paper mainly uses the relative correlation and incremental correlation,to compare the relative correlation between comprehensive income information and traditional netincome information, then compares and verificates the other comprehensive income and itscomponents increment correlation. The main conclusions are as follows:(1)Both traditional net income and comprehensive income have the value-relevance with the stockprices, after using the relative correlation to compare the relation between comprehensive incomeinformation, traditional net income information and stock prices, we can know that thevalue-relevance of comprehensive income information on stock prices is stronger than that oftraditional net income information.(2)Both other comprehensive income and its components have enhanced traditional net income onthe explanation of stock price, but other comprehensive income's components is more powerfulthan other comprehensive income in incremental correlation.(3)The relationship between each componet of other comprehensive income and stock prices makesa great difference.Changes of fair value on available-for-sale financial assets is remarkablycorrelated with stock prices.However,other components cannot enhance the value-relevance oftraditional net income information.(4)Among the control variables, scale and tradable share proportion are both significantlynegatively associated with stock prices. Whereas asset-liability ratio is not significantly ralted withstock prices.