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Analysis of the Net Result and the Comprehensive Income: An Empirical Study of the Listed Companies on the Bucharest Stock Exchange

Author

Listed:
  • Claudia Mihaela Rapan

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Viorel-Costin Banta

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Andreea Serban

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Andreia Manea

    (Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

Stakeholders usually use net profit as an important indicator in assessing the performance of companies. In times of economic instability, there is a need for additional financial information, so the company's net profit and comprehensive income can be important in stakeholder decision-making. The article is devoted to analysing the relationship between earnings per share, comprehensive income per share and equity per share. The object of the study is companies whose shares were listed on the Bucharest Stock Exchange in 2019-2021. For this study, companies were selected that prepared financial statements per International Financial Reporting Standards (IFRS) and disclosed information about their comprehensive income. Financial entities were excluded from the analysis. Data were collected by querying the Thomson Reuters (Refinitiv) database, and comprehensive income data were collected manually from financial statements published by the companies on the Bucharest Stock Exchange website. The purpose of the study is to determine whether there is a significant effect of the share price on earnings per share, comprehensive earnings per share, and equity per share. The authors used the linear regression to identify the relationship between dependent and independent variables. The study results show that all variables significantly affect the share price. In particular, earnings per share have a more significant impact on the share price than comprehensive earnings per share, although this difference is insignificant.

Suggested Citation

  • Claudia Mihaela Rapan & Viorel-Costin Banta & Andreea Serban & Andreia Manea, 2022. "Analysis of the Net Result and the Comprehensive Income: An Empirical Study of the Listed Companies on the Bucharest Stock Exchange," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 76-81, June.
    • Handle: RePEc:iaf:journl:y:2022:i:2:p:76-81
    DOI: 10.33146/2307-9878-2022-2(96)-76-81
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    References listed on IDEAS

    as
    1. Khan, Shahwali & Bradbury, Michael E., 2014. "Volatility and risk relevance of comprehensive income," Journal of Contemporary Accounting and Economics, Elsevier, vol. 10(1), pages 76-85.
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    Cited by:

    1. Yusuf Olatunji Oyedeko & Olusola Segun Kolawole & Regina Samson & Olena Voloshyna, 2023. "Moderating Effect of Tactical Asset Allocation on the Risk-Return Relationship in the Nigerian Stock Market," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 83-91, June.

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    More about this item

    Keywords

    net profit; comprehensive income; other comprehensive income; share price; Bucharest stock exchange;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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