The Usefulness of Industry Segment Information

Posted: 28 Aug 2000 Last revised: 22 May 2014

See all articles by Sudipta Basu

Sudipta Basu

Temple University - Department of Accounting

Edward B. Douthett

George Mason University - School of Business

Steve C. Lim

Texas Christian University - M.J. Neeley School of Business

Date Written: April 1, 2000

Abstract

This paper identifies segment characteristics that made industry segment reporting more useful in equity valuation. Those characteristics are the difference in segments' growth potential, the relative size of segments, and the magnitude of correlation in segment earnings. Usefulness is measured by examining the percentage increase in R2 and the incremental coefficient of earnings in regressions of stock returns on disaggregate segment earnings relative to aggregate earnings.

JEL Classification: M41, M44, G12

Suggested Citation

Basu, Sudipta and Douthett, Edward B. and Lim, Steve, The Usefulness of Industry Segment Information (April 1, 2000). Available at SSRN: https://ssrn.com/abstract=237333

Sudipta Basu

Temple University - Department of Accounting ( email )

Philadelphia, PA 19122
United States
215.204.0489 (Phone)
215.204.5587 (Fax)

Edward B. Douthett

George Mason University - School of Business ( email )

Steve Lim (Contact Author)

Texas Christian University - M.J. Neeley School of Business ( email )

2900 Lubbock Street
Fort Worth, TX 76129
United States
817-257-7536 (Phone)

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