The Relevance of Comprehensive Profit Value of Islamic Entities in Indonesia and Malaysia
DOI:
https://doi.org/10.30737/ekonika.v10i1.6372Keywords:
Value Relevance, Comprehensive Income, Sharia Entities, Indonesia and MalaysiaAbstract
Fundamental changes in the structure of income statement reporting do not only occur in conventional entities, but also in sharia entities. These changes are the presence of comprehensive income information, reclassification of other comprehensive income (OCI) components and the interests of non-controlling shareholders. This study aims to test the reaction of the sharia market to these three pieces of information in financial reporting. Research data on sharia entities listed on the Jakarta Islamic Index (JII) and Kuala Lumpur Composite Index (KLCI) with a sample of 30 companies, for the period 2013 - 2023, observation data 564. Hypothesis testing with moderated regression analysis (MRA). The results of the study indicate that the Indonesian and Malaysian markets as representatives of the largest sharia emerging markets in Southeast Asia respond to comprehensive income information from sharia entities. The presentation of reclassification of OCI components and the interests of non-controlling shareholders strengthens the content of comprehensive income information. Further analysis with different proxy measurements of value relevance variables, stock returns and natural logarithms of stock prices, both provide the same test results. Likewise, disaggregated data based on country of origin, namely Indonesia and Malaysia, and financial subsectors, namely Islamic banking and non-banking entities, also provide similar results. The originality of this study is the examination of the moderating role of reclassification of OCI components and non-controlling interests of emerging market Islamic entities in the influence of comprehensive income and stock returns
Downloads
References
Adwan, S., Alhaj-Ismail, A., & Girardone, C. (2020). Fair Value Accounting and Value Relevance of Equity Book Value and Net Income For European Financial Firms During The Crisis. Journal of International Accounting, Auditing and Taxation, 39(100320). https://doi.org/https://doi.org/10.1016/j.intaccaudtax.2020.100320
Agustin, B. H., & Kusuma, M. (2024). Pengaruh Penghasilan Komprehensif Lain & Laba yang Diatribusikan Terhadap Audit Report Lag. Jurnal Proaksi, 10(4), 739–752. https://doi.org/10.32534/jpk.v11i4.6323
Andriana, R., Kusuma, M., Kasim, C. M. M., & Barreto, C. A. (2025). The Effect of Marketing Activities on Profitability With Others Comprehensive Income As Moderation: Evidence from Southeast Asia. Ekuilibrium: Jurnal Ilmiah Bidang Ilmu Ekonomi, 20(1).
Athori, A., & Kusuma, M. (2023). Effect of Others Comprehensive Income on Company Value by Mediation of Retained Earnings: Evidence From Indonesia. JCA (Jurnal Cendekia Akuntansi), 4(2), 141. https://doi.org/10.32503/akuntansi.v4i2.4580
Ball, R., & Brown, P. (1968). An Empirical of Accounting Income Numbers. Journal of Accounting Research, 6(2), 159–178. https://www.jstor.org/stable/2490232
Ball, R., & Brown, P. (2019). Ball and Brown (1968) after fifty years. Pacific Basin Finance Journal, 53(December 2018), 410–431. https://doi.org/10.1016/j.pacfin.2018.12.008
Banks, L., Hodgson, A., & Russell, M. (2018). The location of comprehensive income reporting – does it pass the financial analyst revision test? Accounting Research Journal, 31(4), 531–550. https://doi.org/10.1108/ARJ-04-2017-0075
Black, D., & Neururer, T. (2024). Do Analysts Provide Information about Other Comprehensive Income in Book Value Forecasts for Financial Firms? Advances in Accounting, 64(100726). https://doi.org/10.1016/j.adiac.2023.100726
Jensen, M., & Meckling, W. (1976). Theory of The Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3, 305–360. https://doi.org/10.1177/0018726718812602
Kanagaretnam, K., Mathieu, R., & Shehata, M. (2009). Usefulness of comprehensive income reporting in Canada. Journal of Accounting and Public Policy, 28(4), 349–365. https://doi.org/10.1016/j.jaccpubpol.2009.06.004
Kubota, K., Suda, K., & Takehara, H. (2011). Information content of other comprehensive income and net income: Evidence for Japanese firms. Asia-Pacific Journal of Accounting and Economics, 18(2), 145–168. https://doi.org/10.1080/16081625.2011.9720879
Kusuma, M. (2021a). Measurement of Return on Asset (ROA) based on Comprehensive Income and its Ability to Predict Investment Returns: an Empirical Evidence on Go Public Companies in Indonesia before and during the Covid-19 Pandemic. Ekuilibrium : Jurnal Ilmiah Bidang Ilmu Ekonomi, 16(1), 94. https://doi.org/10.24269/ekuilibrium.v16i1.3238
Kusuma, M. (2021b). Modification of Profitability Measures with Comprehensive Income and Reclassification of Other Comprehensive Income as A Mediation of Effects Asset Utilization on Firm Value. Jurnal Keuangan Dan Perbankan, 25(4).
Kusuma, M. (2021c). Modification of Profitability Measures with Comprehensive Income and Reclassification of Other Comprehensive Income as A Mediation of Effects Asset Utilization on Firm Value. Jurnal Keuangan Dan Perbankan, 25(4), 855–879. https://doi.org/10.26905/jkdp.v25i4.6132
Kusuma, M. (2023a). Can the Reclassification of Others Comprehensive Income Narrow Opportunities for Creative Accounting: Earnings Management and Income Smoothing? Jurnal Akuntansi Dan Keuangan, 25(1).
Kusuma, M. (2023b). Nilai Relevansi Lima Item Parsial Penghasilan Komprehensif Lainnya (OCI) Dalam Kondisi Fundamental Makro Ekonomi Terdampak Covid-19. In G. Chandrarin (Ed.), Book Chapter : Kajian Tentang Penerapan Akuntansi Di Era Digitalisasi dan Pandemi Covid-19 (1st ed., pp. 1–24). Dimar Intermedia.
Kusuma, M. (2023c). Pengaruh Kinerja Operasi, Entitas Anak dan Asosiasi Terhadap Laba dan Ekuitas yang Diatribusi : Bukti dari Indonesia. JCA (Jurnal Cendekia Akuntansi), 4(2), 120. https://doi.org/10.32503/akuntansi.v4i2.4579
Kusuma, M. (2024). Dapatkah Laba Komprehensif Digunakan untuk Memprediksi Financial Distress? TEMA: Jurnal Tera Ilmu Akuntansi, 25(1).
Kusuma, M. (2020). Penghasilan komprehensif lain dan prediksi arus kas masa depan : Bukti dari Indonesia. Seminar Nasional SENIMA Ke 5 Universitas Negeri Surabaya, Senima 5, 815–832. http://bit.ly/ProsidingSenima5
Kusuma, M., & Agustin, B. H. (2023). Can Others Comprehensive Income Affect Dividend Payments In Indonesia? Share: Jurnal Ekonomi Dan Keuangan Islam, 12(1).
Kusuma, M., & Agustin, B. H. (2024). Nilai Relevansi Kepentingan Non Pengendali dalam Laporan Keuangan Konsolidasi : Bagaimana Pasar Bereaksi, dan Kemampuannya dalam Memprediksi Laba dan Dividen? Jurnal Akuntansi Dan Governance, 4(2). https://medium.com/@arifwicaksanaa/pengertian-use-case-a7e576e1b6bf
Kusuma, M., Assih, P., & Zuhroh, D. (2021). Pengukuran Kinerja Keuangan : Return on Equity (ROE) Dengan Atribusi Ekuitas. Jurnal Ilmiah Manajemen Dan Bisnis, 22(2), 223–244. https://doi.org/10.30596/jimb.v22i2.7935
Kusuma, M., & Athori, A. (2023). Can Income and Equity Attribution Minimize Agency Costs ? (Effect of Attribution Policy on Earnings Management and Firm Value). Proceeding Medan International Economic and Business (MICEB) 2023, 1(1).
Kusuma, M., Chandrarin, G., Cahyaningsih, D. S., & Lisetyati, E. (2022). Reclassification of Others Comprehensive Income, Earnings Management, and Earnings Quality : Evidence From Indonesia. Asia-Pacific Management Accounting Journal, 17(3), 205–237. https://apmaj.uitm.edu.my/index.php/current/20-cv17n3/165-av17n3-8
Kusuma, M., & Kusumaningarti, M. (2023). Earnings Response Coefficient ( ERC ) Berbasis Laba Komprehensif dan Laba Diatribusi : Modifikasi Teori Kandungan Laba ( Ball & Brown , 1968 ). Jurnal Ilmiah Akuntansi Manajemen, 6(2), 141–162. https://doi.org/10.35326/jiam.v6i2.4346
Kusuma, M., & Luayyi, S. (2024). Do others comprehensive income, profit, and equity attributable impact external audit fee? Journal of Accounting and Investment, 25(1), 112–136. https://doi.org/10.18196/jai.v25i1.20470
Kusuma, M., Marjukah, A., & Kasim, C. M. M. (2025). The Value Relevance of Unrealised Earnings. Jurnal Akuntansi Kontemporer (JAKO), 17(1), 12–25. https://doi.org/10.33508/jako.v17i1.5886
Kusuma, M., & Rahayu, P. (2022). Can Others Comprehensive Income Be Used For Tax Avoidance? Jurnal Akuntansi Dan Keuangan (JAK), 24(2), 68–79. https://jurnalakuntansi.petra.ac.id/
Kusuma, M., & Saputra, B. M. (2022). Pengaruh Fundamental Makro Ekonomi Terhadap Penghasilan Komprehensif Lain dan Persistensi Laba Komprehensif. Jurnal Kajian Akuntansi, 6(1), 145–176.
Kusuma, M., Zuhroh, D., Assih, P., & Chandrarin, G. (2021). The Effect of Net Income and Other Comprehensive Income on Future’s Comprehensive Income With Attribution of Comprehensive Income as Moderating Variable. International Journal of Financial Research, 12(3), 205–219.
Kusumaningarti, M., Kusuma, M., & Athori, A. (2025). Dapatkah Penghasilan Komprehensif Lainnya Digunakan Sebagai Media Tindakan Kecurangan Laporan Keuangan ? Jurnal Akuntansi Dan Governance, 5(2), 111–128. https://doi.org/10.24853/jago.5.2.111-128
Murdiyanto, E., & Kusuma, M. (2022). Moderasi Leverage dalam Pengaruh Ukuran Bank dan Aset Keuangan Terhadap Kinerja Keuangan Komprehensif BPR Konvensional dan BPR Syariah Se-Kediri Raya. Jurnal Ekonika : Jurnal Ekonomi Universitas Kadiri, 7(2). http://ojs.unik-kediri.ac.id/index.php/ekonika/index
Rahayu, P., & Kusuma, I. W. (2020). Predictive Value of Other Comprehensive Income: Evidence From Asean. Jurnal Akuntansi Dan Keuangan Indonesia, 17(2). https://doi.org/10.21002/jaki.2020.09
Sajnóg, A. (2017). The role of comprehensive income in predicting banks’ future earnings based on the practice of banks listed on the Warsaw Stock Exchange. Equilibrium, 12(3). https://doi.org/10.24136/eq.v12i3.26
Scott, W. (2012). Financial Accounting Theory. In jToronto: Prentice-Hall. Toronto: Prentice-Hall.
Shi, L., Wang, P., & Zhou, N. (2017). Enhanced disclosure of other comprehensive income and increased usefulness of net income: The implications of Accounting Standards Update 2011–05. Research in Accounting Regulation, 29(2), 139–144. https://doi.org/10.1016/j.racreg.2017.09.005
Veltri, S., & Ferraro, O. (2018). Does other comprehensive income matter in credit-oriented systems? Analyzing the Italian context. Journal of International Accounting, Auditing and Taxation, 30, 18–31. https://doi.org/10.1016/j.intaccaudtax.2017.12.006
Wahyudi, M., Sari, H. P., & Kusuma, M. (2024). Kualitas Auditor sebagai Pemoderasi Hexagon Fraud Theory, Fraudulent Financial Statement dan Tax Avoidance. Ekuivalensi : Jurnal Ekonomi Bisnis, 10(2), 324–338.
Yahaya, K. A., Fagbemi, T. O., & Oyeniyi, K. K. (2015). Effect of International Financial Reporting Standards on the Financial Statements of Nigerian Banks. Journal of Agricultural Economics, Environment and Social Sciences, 1(1), 18–29.
Yousefinejad, M., Ahmad, A., & Zaini, E. (2017). Value Relevance of available-for-sale financial instruments (AFS) and revaluation surplus of PPE (REV) components of other comprehensive income. SHS Web of Conferences, 34, 03004. https://doi.org/10.1051/shsconf/20173403004
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Moch. Wahyudi, Marhaendra Kusuma, Abdul Hadi Bin Ahamad
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with Jurnal Ekonika: Jurnal Ekonomi Universitas Kadiri agree to the following terms:
1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
2. Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
How to Cite
