The extent of difference in the value-relevance and predictive abilities of net income and comprehensive income for future operating cash flows -an empirical study on the companies listed in Egyptian Stock Exchange from 2016-2018

This reseaech aimes at analyzing the extent of difference in the value- relevance ability for net Income (NI) and comprehensive incomme (CI) with market value of the companies and stocks’ returns; the affecting factors on these differences; and a-nalyzing the predictive ability for future operating cash flows and their differenceces in NI and CI including their affecting factors on the companies listed in Egyptian stock Exchange.
 
 
The study results showed an increasing of   the value- relevance ability of   NI comp-aring to CI relating to the company market value. It can be interpreted by the lack of disclosures on CI components in companies listed in Egyptian Stock exchange and the converging of NI and CI. The significance of each of the two moderating vari-ables, the sector type and audit quality, were not significantly affected by the value relevance ability of NI or CI, especially with increasing impact of the size of the co-mpany, adding the two moderating variables. These can be attributed to the relation between large sized companies and the Egyptian audit firms in partnership with the Big 4 audit firms.
 The results also indicate that the significant of value relevance ability of CI comparing to NI  according to stocks’ returns, indicating that the stocks’ returns are more closely linked to CI.  With the addition of the two moderating variables, the re-sults of the multiple regression model analysis indicated that the impact of both the sector type and audit quality was not significant on the value -relevance ability of NI and CI.The study results also showed significant of predictive ability of the future operating cash flows for the NI as compared to the CI.The difference between the predictive ability of each of them is explained by the low volatility in NI compared to the high volatility in CI and OCI. With the addition of the two moderating variables, the results of the multi-regression model analysis showed that the effect of the audit quality on predicting future operating cash flows. However, the effect of company sector did not increase the predictive ability of NI and CI.