The main aim of the article is to test that the Other Comprehensive Income (OCI) is incrementally value relevant for investors with respect to net income. Literature review highlights mixed results. The authors, hypothesizing that one of the main causes of the inconsistency of results is the use of OCI data from the period before implementation of comprehensive income reporting (as if OCI numbers), used in their value relevance regression analysis as reported OCI numbers in the listed companies’ financial accounts. The sample comprehends the groups listed on the Milan Stock Exchange. Our evidence supports the conclusion that the as reported OCI numbers are incrementally value relevant for investors.
Keywords: Value relevance, net income, other comprehensive income, Italy, listed groups, as reported data.