PT  - JOURNAL ARTICLE
AU  - Wei Du
AU  - Haizhi Wang
AU  - Jianrong Wang
TI  - Intra-Industry Uncertainty and Firm Valuation
AID  - 10.3905/joi.2019.1.091
DP  - 2019 May 11
TA  - The Journal of Investing
PG  - joi.2019.1.091
4099  - https://pm-research.com/content/early/2019/05/11/joi.2019.1.091.short
4100  - https://pm-research.com/content/early/2019/05/11/joi.2019.1.091.full
AB  - In this paper, we document evidence that intra-industry uncertainty has a positive relation with firm valuation. Specifically, the reduction of intra-industry uncertainty about firm future profitability leads to a decline of firm ME/BE ratios over time. We find that the positive relation is more prominent for firms in high-tech sectors and those with intensive product market competition. Our results are robust to the control of firm-level uncertainty and alternative measures of intra-industry uncertainty.TOPICS: Fundamental equity analysis, statistical methods