The use of evidence and economic analysis in policymaking is on the rise, and accounting standard setting and financial … regulation are no exception. This article discusses the promise of evidence-based policymaking in accounting and financial …

We address how value relevance of accounting information evolved as the new economy developed. Prior research concludes … accounting information—primarily earnings—has lost relevance. We consider more accounting amounts and find no decline in combined … price and accounting information that reflects the new economy …

validity test on accounting research. If the economic magnitude of the study's proxy for quality on firm value is “too large …