The rest of the paper proceeds as follows.
Section 2 outlines recent research findings that suggest explanations for temporal changes in the value-relevance of earnings and book values.
Section 3 discusses the valuation model and the technique used to decompose the explanatory power of earnings and book values into their common and incremental components.
Section 4 describes the sample and the sample selection criteria.
Section 5 presents evidence that the value-relevance of earnings and book values has changed across time. Section 6 provides explanations for the temporal changes in the value-relevance of earnings and book values, while
Section 7 concludes