The first value relevance metric is based on the explanatory power from a regression of stock price on net income and equity book value. To obtain a measure of price that is unaffected by mean differences across countries and industries, which could affect our comparisons of explanatory power, we first regress stock price, P, on country and industry fixed effects. We regress the residuals from this regression, Pr, on equity book value per share, BVEPS, and net income per share, NIPS, separately for IAi> and NIAS firms in both the post- and pre adoption periods, that is, we estimate four regressions.