THE VALUE RELEVANCE OF NET INCOME AND OTHER COMPREHENSIVE INCOME OF BANKS IN NIGERIA
Authors:
Enang, Ekwere Raymond, Bassey, Francis Aniefiok, Akpabio, Etenam Ebenezer, Inyang, Akwaowo Ernest
Abstract:
This paper investigates the relative value relevance of other comprehensive income over net income of deposit money banks in Nigeria. The study was motivated by the debate over the relevance of another comprehensive following IFRS’s requirement that companies should disclose other comprehensive income in addition to net income in the income statement. Analysis of data from 13 out of the 14 listed banks in Nigeria for a period covering 2012 to 2017, using multiple regression analysis, reveals that comprehensive income of deposit money banks in Nigeria is value relevant, and that net income of the banks has a higher association with stock prices of banks than other comprehensive income. The study recommends that firms and regulatory authorities should support the comprehensive income reporting view of International Accounting Standards Board.