Impact of Comprehensive Income Against Net Income on BSCH and BBVA Earnings Stability According to US GAAP (1998-2007)

Abstract

Comprehensive income, more linked to the reality of the markets than the traditional net income, is becoming more relevant as an indicator of companies performance. The aim of this paper is to test empirically the volatility of the former as opposed to the second for BSCH and BBVA through the years of the period 1998-2007, determined according to US GAAP in the SEC 20-F Form, what contributes to evidence of the impact of comprehensive income on earnings stability through the ten years considered for the two Spanish big corporations in the financial sector.