Proceedings

Figure 1.The distribution of financial statements reporting the number
of performance
Thus the traditional in reporting financial performance seems to take priority over the
new changes that tend to present an unique performance reporting. However, the
values that are high and near the Pearson coefficient for both the analysis of net
income correlation with the price per share (0.56), and for the analysis of the
comprehensive income correlation with the price per share (0.47) suggests that
professional investors take into account in making investment decisions both the net
income and the comprehensive income. To validate this hypothesis we considered
important to show to what extent the modification of basic earning per share and
comprehensive income per share influence the price per share. For this, we used the
simple regression model, having already shown that the basic earning per share or
comprehensive income per share, and the price per share, are linked.
4.2 The simple regression model to calculate the price per share in relation
to earning per share
Based on data from Annex 2 and on the results obtained by applying the Regression
function presented in Table 1, we defined the following simple regression function to
express the price per share in relation to basic earning per share:
YNI = 512,22 + 8,91 XNI (Formula 1)
The b coefficient in Formula 1 shows that in the case of a change with a pound/cent of
basic earning per share, the price per share changes by 8.91 pounds/centimes.
Table 1. Summary output for simple regression between price per share
and comprehensive income per share
Regression Statistics
Multiple R 0,56005749
R Square
Adjusted R
0,313664392
Square
Standard
0,302225466
Error 1180,733454
~ 977 ~