Considering reformulation of the Ohlson (1995) model, this book demonstrates how to improve the empirical specification of value relevance models that explore the relevance of accounting information by accommodating the most recent prior periods equity price as an additional explanatory variable. When the model specification is improved by including the most recent prior periods price as an additional explanatory variable, current trailing earnings are shown to be at best marginally value relevant when empirically explaining share prices in value relevance regression models. This book also...