Empirical study on value relevance of other comprehensive income required by new accounting standards in china

This article performed an empirical analysis on the value relevance after the disclosure of other comprehensive income. We analyzed the issue with the annual reports from 2007 to 2010 (released after the implementation of new accounting standards) of listed companies in Shanghai and Shenzhen on the basis of the Feltham-Ohlson model. We find that adding other comprehensive income to the disclosure can significantly enhance the explanation effect of traditional income for stock price, but the correlation degree is lower than traditional accounting income. The article is the first to perform empirical analysis for studying the value relevance brought by other comprehensive income disclosure, and enriches the empirical analysis achievements for other comprehensive income.