Analysis of the Net Result and the Comprehensive Income: An Empirical Study of the Listed Companies on the Bucharest Stock Exchange

Abstract

Stakeholders usually use net profit as an important indicator in assessing the performance of companies. In times of economic instability, there is a need for additional financial information, so the company's net profit and comprehensive income can be important in stakeholder decision-making. The article is devoted to analysing the relationship between earnings per share, comprehensive income per share and equity per share. The object of the study is companies whose shares were listed on the Bucharest Stock Exchange in 2019-2021. For this study, companies were selected that prepared financial statements per International Financial Reporting Standards (IFRS) and disclosed information about their comprehensive income. Financial entities were excluded from the analysis. Data were collected by querying the Thomson Reuters (Refinitiv) database, and comprehensive income data were collected manually from financial statements published by the companies on the Bucharest Stock Exchange website. The purpose of the study is to determine whether there is a significant effect of the share price on earnings per share, comprehensive earnings per share, and equity per share. The authors used the linear regression to identify the relationship between dependent and independent variables. The study results show that all variables significantly affect the share price. In particular, earnings per share have a more significant impact on the share price than comprehensive earnings per share, although this difference is insignificant.

Keywords

• net profit
• comprehensive income
• other comprehensive income
• share price
• bucharest stock exchange