Proceedings

Figure 3. X Variable 1 Line Fit Plot
4.4. Discussion concerning the power of net income and comprehensive income
for profesional investors
From the comparative analysis of the two simple regression models, it is noted that
the price per share is influenced to a greater extent by the net income than by the
comprehensive income. Thus, in the case of a change with a pound/centime of basic
earning per share, the price per share changes by 8.91 pounds/centimes, while in the
case of a change with a pound/centime of comprehensive income per share, the price
per share changes by 5,37 pounds/centimes. However, we consider that the difference
between the b coefficient in Formula 1 (8.91) and the β coefficient in Formula 2
(5.37) is insignificant since the amounts are expressed in pounds/centimes. This close
relationship that is, on the one hand, between basic earning per share and price per
share, and on the other hand, between comprehensive income per share and price per
share, was confirmed by the analysis using Pearson coefficient which showed the
correlation values of 0.56 for net income and 0.47 for comprehensive income.
Therefore, we consider validated the assumption that in making investment decisions,
professional investors take into account both the net income and the comprehensive
income. To support this idea, we present the interpretation of the results obtained by
collecting data from the 2009's financial statements for entities under study.
As seen in Table 3, most economic entities obtain a positive result, for both net
income and comprehensive income. Four out of the eight entities for which
comprehensive income registered a negative value, was generated by other
comprehensive income (net income for these entities being positive) while for the
remaining four entities, the negative value of comprehensive income was generated
both by the negative net income and by the negative value of other comprehensive
income. The remaining two entities had a negative result, in the end they had a
positive comprehensive income as other comprehensive income were higher than net
income. We can note that for 60% of entities surveyed, total comprehensive income
has a negative value.
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