1. Accounting Lags behind a Knowledge Economy
- Author:
- Peter J. Wallison
- Publication Date:
- 03-2004
- Content Type:
- Policy Brief
- Institution:
- American Enterprise Institute for Public Policy Research
- Abstract:
- Some financial analysts worry that high price-earnings ratios reflect unfounded optimism in corporate earnings potential and signal a return to the "bubble" market; however, conventional accounting methods used to determine the value of companies have not kept pace with changes in the U.S. economy and are therefore understating the value of America's most dynamic companies. High price-earnings ratios seem to indicate that investors are wise to that.
- Topic:
- International Relations, Foreign Policy, Democratization, and Economics
- Political Geography:
- United States and America