Accounting Papers

Document Type

Journal Article

Date of this Version

1-2003

Publication Source

Journal of Accounting and Economics

Volume

34

Issue

1-3

Start Page

43

Last Page

67

DOI

10.1016/S0165-4101(02)00087-3

Abstract

We find mixed support for the hypothesis that a “New Economy” subperiod occurred in the late 1990s in which the relation between equity value and traditional financial variables differs from previous periods. We examine a regression model of equity value on financial variables over 25 years for a broad firm sample and for firm subsamples thought to be emblematic of the New Economy. We find the regression model's explanatory power declined in the New Economy subperiod for all firm subsamples. However, for all subsamples, the regression model's structure during the New Economy subperiod is not unusual compared to other subperiods.

Copyright/Permission Statement

© 2003. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/

Keywords

capital market, equity valuation, new economy

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Date Posted: 27 November 2017

This document has been peer reviewed.