Discussion of 'the Internet Downturn: Finding Valuation Factors in Spring 2000'

Posted: 5 Feb 2003

See all articles by Jonathan Lewellen

Jonathan Lewellen

Dartmouth College - Tuck School of Business; National Bureau of Economic Research (NBER)

Abstract

This article reviews 'The Internet downturn: Finding valuation factors in Spring 2000' by Elizabeth Keating, Thomas Lys, and Robert Magee (KLM). Their paper contributes to a growing literature on the valuation of Internet firms, finding strong relations among market prices, accounting variables, and assorted 'new economy' measures of performance. I argue that their results tell us more about investors' (mis-) perceptions in Spring 2000 than about the underlying economics of Internet firms. Moreover, the valuations seem unlikely to repeat. KLM's findings may not generalize to other firms or time periods.

Keywords: Internet Stock, Valuation, Market Efficiency, Cross-sectional Regression

JEL Classification: G14, M41

Suggested Citation

Lewellen, Jonathan W., Discussion of 'the Internet Downturn: Finding Valuation Factors in Spring 2000'. Journal of Accounting and Economics, Vol. 34, No. 1-3, pp. 237-247, January 2003. Available at SSRN: https://ssrn.com/abstract=377560

Jonathan W. Lewellen (Contact Author)

Dartmouth College - Tuck School of Business ( email )

Hanover, NH 03755
United States
603-646-8650 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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