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 Jul 31 TA - The Journal of Investing PG - 16--27 VI - 28 IP - 5 4099 - https://pm-research.com/content/28/5/16.short 4100 - https://pm-research.com/content/28/5/16.full AB - This article documents 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. The authors find that the positive relation is more prominent for firms in high-tech sectors and those with intensive product market competition. Their results are robust to the control of firm-level uncertainty and alternative measures of intra-industry uncertainty.TOPICS: Fundamental equity analysis, statistical methods