This study explores the value relevance of financial statements in private equity markets, and compares the value relevance of financial statements to that of non-financial statement information within and across private and public equity markets. For a sample of U.S. biotechnology firms, I find...

This paper sheds light on how and why the stock market values high technology by examining the pricing of 606 biotechnology firms that were publicly traded at some time during the period 1989:q1-2000:q3. Contrary to the common view that the primary value drivers of biotechnology are...

In this paper I measure the importance of three groups of factors in the pricing of U.S. Internet stocks: economic fundamentals, web traffic, and supply and demand forces. Using log-linear regression on a panel of data for Net and non-Net stocks on 2/1/2000, I highlight five findings. First,...

This paper sheds light on the economics of Internet firms by extracting information on major value-drivers from their stock prices. Contrary to conventional Wall Street wisdom that there is little or no method in the pricing of Net stocks, I find that basic accounting data are highly...

This study investigates the impacts on the equity values of private venture-backed firms of the organizational depth to which they grant employee stock options. I develop two hypotheses. First, applying the reasoning of Demsetz and Lehn (1985), I propose that firms' equity values will be...

This study uses out-of-sample equity value estimates to determine whether earnings disaggregation, imposing valuation model linear information (LIM) structure, and separate industry estimation of valuation model parameters aid in predicting contemporaneous equity values. We consider three levels...

We study whether employee stock option repricings are in the best interests of shareholders by investigating the excess stock returns associated with timely, non-contaminated announcements of repricings by Canadian firms. We develop four theories of why firms reprice employee stock options, and...

In this study, we extend the findings of Barth, Beaver, Hand, and Landsman (1999) by providing empirical evidence that for three levels of disaggregated earnings, (1) the structure provided by the Feltham-Ohlson model aids in predicting equity market values, and (2) forecasting of equity market...

This paper proposes and tests two roles for summary accounting data in explaining cross-sectional variation in takeover premia. We propose that the target's excess stock return at a takeover bid announcement reflects an expectation that the bidder will extract operating efficiency benefits...

This paper employs Ohlson's (1995, 1998) accounting based equity valuation model to structure an empirical assessment of the pricing of dividends in stock prices. We address two questions. First, to what extent does the pricing of dividends reflect Modigliani and Miller?s (1958, 1961) one-to-one...