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Do aggregate earnings components predict GDP growth better? An international setting comparison

This study investigates the usefulness of aggregate accounting earnings and their components to predict GDP growth.This study shows evidence that net income, net operating income, other comprehensive income, and net income change at aggregate level could predict GDP growth. This study splits sample...

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Main Authors: Atmini, Sari, Sumiyana, Sumiyana
Format: Conference or Workshop Item
Language:English
Published: 2017
Subjects:
HF5601 Accounting
Online Access:http://repo.uum.edu.my/21029/1/shsconf_four2017%201%207vvii.pdf
http://repo.uum.edu.my/21029/
http://doi.org/10.1051/shsconf/20173407006
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spelling my.uum.repo.210292017-02-23T03:50:40Z http://repo.uum.edu.my/21029/ Do aggregate earnings components predict GDP growth better? An international setting comparison Atmini, Sari Sumiyana, Sumiyana HF5601 Accounting This study investigates the usefulness of aggregate accounting earnings and their components to predict GDP growth.This study shows evidence that net income, net operating income, other comprehensive income, and net income change at aggregate level could predict GDP growth. This study splits sample into developed and developing countries.Almost all of aggregate earnings components could predict GDP growth in developed countries.On the contrary, only other comprehensive income and net income growth could predict it in developing countries. Moreover, sensitivity analysis shows evidence that the predictive power of accounting numbers are more consistently found in developed countries. It implies that all economic activities of firms listed in developed countries’ stock exchanges fully reflect to that of macro economy. This reflection is better than those of in developing countries. We infer that the value relevance of accounting earnings and their disaggregation have reached not only in the capital markets but also in the national macroeconomy level.Indeed, this prediction seems dominantly to be accurate in developed countries only. 2017 Conference or Workshop Item PeerReviewed application/pdf en cc4_by http://repo.uum.edu.my/21029/1/shsconf_four2017%201%207vvii.pdf Atmini, Sari and Sumiyana, Sumiyana (2017) Do aggregate earnings components predict GDP growth better? An international setting comparison. In: 17th Annual Conference of the Asian Academic Accounting Association (2016 FourA Conference), 20-22 November 2016, Kuching, Sarawak. http://doi.org/10.1051/shsconf/20173407006 doi:10.1051/shsconf/20173407006
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic HF5601 Accounting
spellingShingle HF5601 Accounting
Atmini, Sari
Sumiyana, Sumiyana
Do aggregate earnings components predict GDP growth better? An international setting comparison
description This study investigates the usefulness of aggregate accounting earnings and their components to predict GDP growth.This study shows evidence that net income, net operating income, other comprehensive income, and net income change at aggregate level could predict GDP growth. This study splits sample into developed and developing countries.Almost all of aggregate earnings components could predict GDP growth in developed countries.On the contrary, only other comprehensive income and net income growth could predict it in developing countries. Moreover, sensitivity analysis shows evidence that the predictive power of accounting numbers are more consistently found in developed countries. It implies that all economic activities of firms listed in developed countries’ stock exchanges fully reflect to that of macro economy. This reflection is better than those of in developing countries. We infer that the value relevance of accounting earnings and their disaggregation have reached not only in the capital markets but also in the national macroeconomy level.Indeed, this prediction seems dominantly to be accurate in developed countries only.
format Conference or Workshop Item
author Atmini, Sari
Sumiyana, Sumiyana
author_facet Atmini, Sari
Sumiyana, Sumiyana
author_sort Atmini, Sari
title Do aggregate earnings components predict GDP growth better? An international setting comparison
title_short Do aggregate earnings components predict GDP growth better? An international setting comparison
title_full Do aggregate earnings components predict GDP growth better? An international setting comparison
title_fullStr Do aggregate earnings components predict GDP growth better? An international setting comparison
title_full_unstemmed Do aggregate earnings components predict GDP growth better? An international setting comparison
title_sort do aggregate earnings components predict gdp growth better? an international setting comparison
publishDate 2017
url http://repo.uum.edu.my/21029/1/shsconf_four2017%201%207vvii.pdf
http://repo.uum.edu.my/21029/
http://doi.org/10.1051/shsconf/20173407006
_version_ 1644283125107261440
score 13.211869

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