Price = Stock price at the end of year t. BVPS = Book value of shareholders' equity at the end of year t. EPS = Earnings per share
for year t. REPS = Residual (abnormal) earnings per share = EPSt
ÿr*((BVPSt + BVPSt ÿ 1)/2) where r is the country average
lending rate in year t taken from the International Financial Statistics Yearbook. Price, book value, EPS, and REPS amounts are in
nominal local currency. ROE = Return on equity = EPSt /((BVt+BVt ÿ 1)/2).