| The concept of comprehensive income was completely introduced into Chinese accounting standard when the third explanation of Chinese accounting standard declared in June2009. And then total comprehensive income and other comprehensive income were both listed under the earning per share in the Income Statement. According to this institution, firstly, based on data of the annual financial statements from2009to2011from Shanghai and Shenzhen A-share listed companies, then take use of three separated years’ data, through empirical method to estimate the value-relevance of the net income, comprehensive income, other comprehensive income and the components of comprehensive income by using the adjusted Price model and Return model. Comparing with these regression results, the results are listed as follow:(1) Net income and total comprehensive income are both value-relevance, but the later one’s is more significant than the former one’s.(2) Other comprehensive income gives the added information.(3) The components of other comprehensive income are value-relevance, but only the SEC is the most significant one. Otherwise, to make the result of this paper more reasonable and dependable, two of variables, total assets’ Napierian Logarithm (LNTA) and ratio of shares outstanding(LTBL), are used in the Price model as control variables to control the scalar effects, at last it finds that the regression results are more significant. Based on this paper’s result and combining with the current situation of Chinese capital market, author gives some suggestions about how to disclose other comprehensive correctly and timely. Meanwhile, author advises that it is significant to aware the importance of the other comprehensive income. Finally, I hope the result of this paper can give some help for our standard makers, firm the continuously confidence of the Internationalized standard, and boost Chinese accounting standard perfectly. |
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