Begley, Joy; Chamberlain, Sandra; Joo, Jeong Hwan - 2022
This article regresses the market value of equity on pre-depreciation income and on depreciation expense for capital …-intensive firms, referring to the coefficients from our model as valuation weights. The valuation weight on depreciation expense … versus the weight on pre-depreciation income are compared, to detect depreciation biases, over time and across sectors. Our …
