Is comprehensive income superior to net income as a measure of firm performance?

Dan Dhaliwal, K. R. Subramanyam, Robert Trezevant

Research output: Contribution to journalArticlepeer-review

205 Scopus citations


With the exception of financial firms, we find no evidence that comprehensive income is more strongly associated with returns/market value or better predicts future cash flows/income than net income. Moreover, the only component of comprehensive income that improves the association between income and returns is the marketable securities adjustment. Our results do not support the claim that comprehensive income is a better measure of firm performance than net income. Our results also raise questions about the appropriateness of items included in SFAS 130 comprehensive income as well as the need for mandating uniform comprehensive income disclosures for all industries.

Original languageEnglish (US)
Pages (from-to)43-67
Number of pages25
JournalJournal of Accounting and Economics
Issue number1-3
StatePublished - Jan 1999


  • Capital markets
  • Comprehensive income
  • M41
  • SFAS 130
  • Summary measures of performance

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


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