دراسة و اختبار العلاقة بين معلومات عناصر الدخل الشامل الآخر و أسعار أسهم الشركات المقيدة في البورصة المصرية

Abstract EN

The aim of this study is to test the relationship between other comprehensive income and the stocks' prices of companies listed on the Egyptian Stock Exchange.

The study also examines the effect of both the audit quality and reporting formats, as moderator variables.

Using a sample of 507 firm quarter observations extracted for all companies listed on the Egyptian Stock Exchange during the period from 2014 to 2017, results approved that other comprehensive income information affects the market value of shares.

However, the effect was significantly negative, this result is consistent with the idea that the investor does not consider this information to reflect the real income of the company.

The results showed that audit quality affects the relationship between other comprehensive income on the market value of shares.

However, what draws attention to the role of audit quality in the Egyptian environment, Investor's lack of confidence has increased as the audit quality increases.

This result indicates that the audit quality is not perceived by the investor in the Egyptian financial market.

By analyzing the impact of audit quality on the disaggregated other comprehensive income, it was found that the audit quality did not enhance the information content of the elements representing the second and third levels of the fair value hierarchy differently than the elements representing the first level of the fair value hierarchy.

Regarding reporting formats, the investor did not prefer separated comprehensive income statement (more transparent disclosure) after adjusting the Egyptian accounting standards, compared to the inclusion of other comprehensive income in the statement of changes in equity before adjusting these standards.

The research findings add to the accounting studies on other comprehensive income and its impact on the investors' perceptions when making investment decisions, especially after the issuance of the Egyptian accounting standards as amended for the year 2015.

The research is also an area of interest of the standards setter and the financial regulatory authority in evaluating the effectiveness of other comprehensive income.