Table III

Value relevance of earnings, book value, free cash flow and R&D

VariablesModel 1Model 2Model 3
EPS8.523*** (0.190)7.185*** (0.186)7.167*** (0.194)
BPS1.237*** (0.0394)1.057*** (0.0407)1.095*** (0.0434)
FCF-IE 3.593*** (0.507)0.485 (0.821)
R&D-IE 69.82*** (14.69)−18.04 (28.73)
BPS × R&D-IE  10.49 (7.019)
BPS × FCF-IE  0.628*** (0.207)
EPS × R&D-IE  178.2*** (50.62)
EPS × FCF-IE  3.242*** (1.189)
Constant8.560*** (0.781)9.530*** (0.738)9.354*** (0.738)
F-stats326.48***458.18***290.09***
R20.4100.3970.400

Notes: Standard errors in parentheses. *p<0.1; **p<0.05; ***p<0.01

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