IDEAS home Printed from https://ideas.repec.org/p/zar/wpaper/dt2003-02.html
   My bibliography  Save this paper

The valuation of earnings components by the capital markets. An international comparison

Author

Listed:
  • Susana Callao Gastón

    (Department of Accounting and Finance, University of Zaragoza)

  • Beatriz Cuéllar Fernández

    () (Department of Accounting and Finance, University of Zaragoza)

  • José Ignacio Jarne Jarne

    (Department of Accounting and Finance, University of Zaragoza)

  • José Antonio Laínez Gadea

    (Department of Accounting and Finance, University of Zaragoza)

Abstract

Over the last decade we have witnessed an increasing process of globalisation in economic activity, in which the capital markets have inevitably been involved. Against this background, this paper presents a comparative study of the relevance of earnings and their components (operating, financial and extraordinary income) in 36 countries that are representative of different regions, levels of market development, accounting systems, etc. The results of our research confirm those obtained from earlier studies, providing evidence of the relevance of earnings figures for valuation purposes, regardless of the market analysed. Nevertheless, the importance of this information differs between countries. We have also established that the disaggregation of earnings into the component parts of the income statement provides the investor with incremental information regarding the market value of the company in question.

Suggested Citation

  • Susana Callao Gastón & Beatriz Cuéllar Fernández & José Ignacio Jarne Jarne & José Antonio Laínez Gadea, 2003. "The valuation of earnings components by the capital markets. An international comparison," Documentos de Trabajo dt2003-02, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
  • Handle: RePEc:zar:wpaper:dt2003-02
    as

    Download full text from publisher

    File URL: http://www.dteconz.unizar.es/DT2003-02.pdf
    Download Restriction: no

    More about this item

    Keywords

    capital markets; accounting information; value relevance; international comparison.;

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zar:wpaper:dt2003-02. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vicente Pinilla). General contact details of provider: http://edirc.repec.org/data/fezares.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.