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Financial statement preparers claim that the 'excess' volatility of comprehensive income (CI) confuses financial statement users. We examine the volatility and risk relevance of CI, relative to net income, for a sample of 92 New Zealand nonfinancial firms for the period 2003-2010. The results show that CI is more volatile than net income. However, the volatility of CI incremental to net income is not related to market risk. Furthermore, the incremental volatility of CI does not modify the pricing of net income. These results hold when asset revaluations are excluded from other CI.

In this paper, we investigate the value relevance of comprehensive income and its components for a sample of 92 New Zealand companies over the period 2003-2010. We find a stronger association of aggregate comprehensive income with stock price and market returns relative to net income. The change in the asset revaluation reserve and the change in fair value of available-for-sale securities drive this association. However, foreign currency translation and cash flow hedges are also associated with prices and returns.

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This study intends to find the impact of political and catastrophic events on stock returns of Karachi Stock Exchange (KSE-100 Index). A total of forty three political and four catastrophic events have been considered from May 1998 to September 2013. Political events are further divided into two groups i.e., favorable political events and unfavorable political events. The impact is checked for political, catastrophic, favorable political and unfavorable political events for 1 day, 5 days, 10 days and 15 days event windows. The results suggest that mean returns before and after political events were different on 5 days window. Thus, political events do have an impact on stock returns, however, it does not last longer and returns are normalized afterwards. Similarly, favorable political events also have impact on stock returns only on 5 days window. Unfavorable political events show abrupt (one day) impact and 5 days impact. Catastrophic events show no impact on stock returns using 1 day, 5 days and 10 days event windows. However, the impact was observed on 15 days event window. These results indicate that Karachi Stock Exchange is inefficient in semi strong form.

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