This study provides evidence on the potential usefulness of depreciation accounting to investors. We first document the extent to which depreciation numbers reported in accordance with current accounting standards improve accounting earnings as a source of information for valuing firms'...

Recent studies indicate that both current Ramp;D investment levels and current or recent changes in Ramp;D investment are positively associated with subsequent excess (risk-adjusted) stock returns. The tentative explanation offered for these results is that shares of Ramp;D-intensive firms are...