Νεγκάκης, Χρήστος Ι.The present paper uses a set of valuation models which are based on Feltham and Ohlson's (1995) model, and examines the relationship between Market values (MV), Book values (BV) Net Income (NI), Residual Income (RI), and Research and Development (RD) expenses over a sample of newly listed US firms for the period 2000-2004. The purpose is to assess the extent to which traditional valuation methods remain valid in the new economic settings after the collapse of international markets in March 2000. Moreover, it is tested if the replacement of RI with NI in valuation models for newly listed firms potentially reduces information content and significance. The results indicate that variants of the Feltham and Ohlson's (1995) model, are able to explain the variation in MV of newly listed firms. Additionally, RI displays no stronger association than NI with MV of newly listed firms. Last, the results indicate that RD expenditures and BV enhance the explanatory power of both NI and RI for MV and their inclusion in valuation models is supported by the present studyapplication/pdfhttps://spoudai.unipi.gr/index.php/spoudai/article/view/1263engUniversity of PiraeusCopyright (c) 2006 SPOUDAI - Journal of Economics and Business1105-8919Σπουδαί - Journal of Economics and Business2241-424XSPOUDAI - Journal of Economics and Business; Vol 56, No 3 (2006); 7-16Εισόδημα επένδυσηςΚεφαλαιαγοράInvestment incomeCapital marketUsing earnings and residual income in the valuation of newly listed firmsUsing earnings and residual income in the valuation of newly listed firmsinfo:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersion2006-07-01Δημοσίευση σε περιοδικόPublication in journalΧρηματοοικονομικάFinanceisi - Business, Finance covers resources primarily concerned with financial and economic correlations, accounting, financial management, investment strategies, the international monetary system, insurance, taxation, and banking.Επιστημονικό άρθροScientific articleΠανεπιστήμιο ΠειραιώςGreek Aggregator OpenArchives.gr | National Documentation Centre (EKT)other