Przydatność komponentów pozostałego wyniku całkowitego w predykcji przyszłych dokonań banków
Usefulness of components of other comprehensive income for predicting banks’ future earnings

Summary/Abstract: The major subject of this paper is the evaluation of usefulness of other comprehensive income and its components for predicting future profits and cash flows in selected bank joint-stock companies listed on the Warsaw Stock Exchange. The differentiation of the components of other comprehensive income was assessed in the course of analysis of quarterly financial statements for the years 2009-2016. This paper uses ten empirical models. The individual components of other comprehensive income are characterized by significant differentiation but slight predictive power in forecasting financial results. However, net unrealized gains and losses on available-for-sale securities and net unrealized gains and losses on derivative contracts classified as cash flow hedges are positively associated with future earnings. Opposite consequences had foreign currency translation adjustments.

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