INSTRUCTIONS
Here are the guidelines:
Value Relevance of Earnings and Book Value
The purpose of this project is to examine the value-relevance of earnings and book value during the last “?” years in the “?” industry. You will use data from Capital IQ and CRSP databases to examine the combined value relevance of these two variables, and whether one of the variables has an incremental value relevance over the other.Following Collins et al. (1997), use Ohlson (1995) model to examine and report on the value relevance of those two items. Make sure to remove observations with negative book values, share prices of less than one dollar, and outliers.
Your project should have a title, an abstract, and the following sections: introduction, literature review (at least one page), sample description, methods, results, conclusions, and references.Use font size 12, Times New Romans, and justify the margins.Your project should be double spaced, except for the abstract. The abstract should be between 100 and 150 words.The abstract must be followed by at least three keywords.All margins should be 1 inch. Use a cover page with your name and title of the paper, and then do NOT write your name again anywhere in the paper. All pages, including tables, appendices and references should be serially numbered, but do not number the cover page.Use bold font for different sections titles and do not number them, but the tables should be numbered.It is up to you what industry you want to use and the length of the sample period, as long as after cleaning the data you have at least 500 useable observations.The results section should include descriptive statistics, correlations, and regression analyses.Your tables should look like the tables in Collins et al. (1997), and your references should be listed alphabetically according to the following style: