Research On Decision-making Relevance Of Other Comprehensive Income Information

With the development of capital market,financial market,financial instruments and international trade,traditional accounting earnings cannot meet the requirements to fully reflect earnings.In this case,in 2009,China put forward the reporting requirements of OCI in ?The Interpretation Of Accounting Standards For Business enterprises No.3?,and raised it as a criterion in the standards of accounting principles in CAS30(2014)formally.OCI reflects changes of the value of the enterprise's net assets which are the impact of unrealized items or situations.OCI is a supplement to the traditional income information.It has become a problem of theoretical and practical significance to study whether the OCI information released by Chinese enterprises has decision-making relevance,which could provide a perspective to examine whether accounting concept change occured in business administration,accounting practice and the use of accounting information,and whether the incremental information provided by OCI meet the requirements of decision relevance after its release,to provide a basis to improve the environment of the practice of accounting principle,improve the quality of accounting information provided based on the criteria requirements,improve the effect of the use of accounting information,and shorten the distance of existing accounting standards from the decision usefulness objective in China.In this thesis,the connotation of OCI is analyzed based on the theoretical development and the change of criterion.This thesis empirically tests the relevance of OCI and its derived information to the decision-making of companies' stakeholders taking the investor and creditor as the representative subject of them,and taking the information of cumulative OCI as the derivative information of OCI,and selecting the companies listed in Shanghai and Shenzhen stock exchange from 2009 to 2017 as sample objects.This thesis is divided into four chapters.The first chapter is the introduction chapter,elaborating the research background,theoretical and practical significance of the research of the decision-making relevance of OCI information,summarizing the existing research results of the field by domestic and foreign scholars,based on which,putting forward the research contents and methods of the thesis,and pointing out its innovation and deficiency.The second chapter analyzes the sources and theoretical connotation of OCI information and expounds the theoretical basis of what's studied in the thesis.The third and fourth chapter further develops the theoretical analysis,puts forward the hypothesis,and conducts corresponding empirical research.In this thesis,OCI information and cumulative OCI information are two explanatory variables of the empirical model.In the study of OCI information,in addition to the information transmitted by OCI itself,accumulated OCI information is also selected,and both of them are taken as explanatory variables of the empirical model.By theoretical analyzing,this thesis considers explanatory variables is correlated with investors'investment decisions and trading behaviors,and thus proposes the first group of hypothesis:OCI information and cumulative OCI information are of value relevance.Next,the thesis analyzes that explanatory variables affect the borrowing decision of creditors,and puts forward the second hypothesis:OCI information and accumulated OCI information are correlated with the amount of borrowing changes.The thesis believes that the correlation of OCI before and after 2014 is different.For both of the first and second sets of assumptions,the overall samples of 2009-2017,the grouped samples of 2009-2013 and 2014-2017 are tested respectively.Considering the pros and cons of price model and compensation model,the thesis used the two models respectively at the same time for the correlation test of the value of the first set of assumptions,in each model,OCI and accumulated OCI are added to the model as explanatory variables respectively for inspection and analysis.To test of the second set of assumptions,the thesis set up a multiple linear regression model,the changes of borrowing as dependent variable,indicates of the corporate leverage,profitability,development ability and financing needs as control variables,OCI and accumulated OCI are add to the model as explanatory variables respectively to analyze significances of the correlation coefficient of them.Finally,the robustness test is carried out and the conclusion is basically consistent with that of main regression analysis.This thesis mainly concludes that OCI information and accumulated OCI information have value relevance.The value relevance of OCI information after 2014 is higher than that before 2014,and the value relevance of accumulated OCI information is lower than that before 2014.Therefore,OCI information is significantly correlated with enterprise stock price and return,indicating that it is correlated with the decision-making of investors.OCI information and accumulated OCI information are not significantly relevant to the decision of creditors on the borrowing scale.