This study examines the effect of ongoing deregulation in the electric utility industry on the relation between market value, book value, and earnings. We predict that deregulation decreases (increases) the relative importance of book value (earnings) in explaining price. We test this prediction...

Recent studies have investigated the assertion that accounting information has become less value-relevant over time. This paper provides additional evidence on this issue by examining the effect of ongoing deregulation in the electric utility industry on the relation between market value, book...