Market valuations in the New Economy: An investigation of what has changed

  • Core J
  • Guay W
  • Van Buskirk A
  • 102

    Readers

    Mendeley users who have this article in their library.
  • 92

    Citations

    Citations of this article.

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. © 2002 Elsevier Science B.V. All rights reserved.

Author-supplied keywords

  • Capital market
  • Equity valuation
  • New Economy

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

Authors

  • John E. Core

  • Wayne R. Guay

  • Andrew Van Buskirk

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free