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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Comprehensive Income and Net Income, Which is more powerful in predicting Future Performance

Ashraf BATAINEH, Abedalqader RABABAH

http://dx.doi.org/10.6007/IJARAFMS/v6-i2/2077

Open access

The aim of this research is to compare the ability of comprehensive income and net income to predict companies' future performance in emerging markets by studying industrial companies in Jordan, and to achieve the purpose of the study a sample of (29) companies listed in Amman Stock Exchange from industrial sector has been selected with (146) observation for the time period of (2011-2015), a multi-regression testing technique has been used using (SPSS), to find out the usefulness of both net income and comprehensive income to the financial information users and to confirm which one of them is more powerful in predicting of the future performance. The results show that the current net income has more predictive power for future income and future comprehensive income than current comprehensive income. Also the results show that even thought that total comprehensive income possesses more informative content and gives further information, but still the net income is more powerful in predicting future performance.

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