Fan, Hung-ShuHung-ShuFanDr. LEE Hua2019-02-252019-02-252013http://hdl.handle.net/20.500.11861/5586http://www2.aaahq.org/AM2013/abstract.cfm?submissionID=1238This paper examines the valuation roles of earnings and book value of equity in diversified firms. As predicted, the major results show that the industrially diversified firms have higher price multiples on earnings and lower discretionary accruals, whereas globally diversified firms have higher price multiples on book values and discretionary accruals. Collectively, the findings suggest that earnings (book values) are more value relevant for industrially (globally) diversified firms and that manipulation of earnings by managers of globally diversified firms is associated with the reduced value relevance of earnings.enConference Paper