search query: @author Gopalakrishnan, V. / total: 3
reference: 2 / 3
| Author: | Cheng, C. Cheung, J. Gopalakrishnan, V. |
| Title: | On the usefulness of operating income, net income and comprehensive income in explaining security returns |
| Journal: | Accounting and Business Research
1993 : SUMMER, VOL. 23:91, p. 195-203 |
| Index terms: | INCOMES SECURITY EARNINGS |
| Language: | eng |
| Abstract: | The study evaluates the usefulness of three earnings definitions (operating income, net income and comprehensive income) in explaining residual security returns. Usefulness is measured in terms of relative information content and incremental information content. In the former, the goodness-of-fit of the return-earnings relationship is compared under each earnings definition. In the latter, the increase in goodness-of -fit due to additional earnings components is measured. Based on a sample that averages 922 firms a year for 18 years, the analysis shows that operating income weekly dominates net income, and that both operating income and net income dominate comprehensive income, in information content. |
SCIMA