摘要：Jordan Securities Commission Disclosure Directives requires that listed corporations in Amman Stock Exchange to report both taxable income and income after tax in their financial statements. This study examines which components of income statement, taxable income or net income after tax, is a better measure of firm performance. In addition, the study tests the association between stock returns and taxable income and net income after tax. The study uses the Vuong's likelihood ratio test to determine whether or not there are significant differences in the adjusted R2 between taxable income's model and net income after tax' model. Data from Amman Stock Exchange during the period 1999-2008 are used. Consistent with prior literature, the results show that taxable income and net income after tax are value relevant in determining stock returns. In addition, the findings indicate that taxable income and net income after tax each has the same ability to measure firm performance. These results provide a useful contribution to the literature because it strengthens the evidence that both taxable income and net income after tax have same ability to measure firm performance. In other words, each can substitute the other.
关键词：Firm performance ; net income after tax ; stock returns ; taxable income ; ;
