A considerable amount of research has been devoted to why R2 differs across firms or markets, although little attention has been paid to the consequences of this difference. We fill this gap by investigating how differing R2 affects investors' assessment of firm value. Using a sample of 90,111...

Intro -- Equity Asset Valuation -- Contents -- Foreword -- Preface -- Acknowledgments -- About the CFA Institute Investment Series -- Chapter 1 Equity Valuation: Applications & Processes -- Learning Outcomes -- 1. Introduction -- 2. Value Definitions and Valuation Applications -- 2.1. What Is...