RISK RELEVANCE OF COMPREHENSIVE INCOME: EVIDENCE FROM NON-FINANCIAL INDONESIA COMPANIES Amrie Firmansyah1*, Wiwik Utami2, Haryono Umar3, Susi Dwi Mulyani4 1*Department of Accounting, Polytechnic of State Finance STAN, Indonesia; 2Department of Accounting, Mercubuana University, Indonesia; 3Department of Accounting, Perbanas Institute, Indonesia; 4Department of Accounting, Trisakti University, Indonesia. Email: 1*amrie.firmansyah@gmail.com, 2wiwikutami@gmail.com, 3flamboyan24@gmail.com, 4susi.dwimulyani@yahoo.com Article History: Received on 22nd February 2020, Revised on 10th April 2020, Published on 20th May 2020 Abstract Purpose of the study: This study aims to examine the effects of net income volatility, other comprehensive income volatility, and comprehensive income volatility on stock return volatility. Methodology: This study employed a quantitative method with multiple linear regression. The sample is all non- financial companies listed on the Indonesia Stock Exchange from 2012 to 2017. Data used in this study are panel data sourced from www.idx.co.id and www.finance.yahoo.com. The sample selection in this study used a purposive sampling method with a total sample of 246 observations. Results: This study suggests that net income volatility is not associated with stock return volatility. However, other income volatility and comprehensive income volatility are positively associated with stock return volatility. Implications: Future studies can employ data from other developing country companies and developed countries to be able to compare the results of this study. Based on the result findings, the existing and potential investors must improve their ability and understanding of IFRS-based financial accounting standards. The Accounting Standard Board, especially in Indonesia, is expected to be able to improve the rules of financial accounting standards as well as the access to the av
Oleh :
Susi Dwimulyani
