Tech Stock Valuation

The median industry-adjusted ratio is found for each firm for years t = −1 to

t = −5 by first finding the industry-adjusted ratio for each year and each firm as

seen in Eq. (9.7).Then, the industry-adjusted median for years t = −1 to t = −5 for

each firm is found as

(9.11)

The industry-adjusted median performance and financial policy ratios across all

firms are found as

(9.12)

As before, identical statistics are also derived over the t = +1 to t = +5 period.

As described previously, a Wilcoxon signed rank test is conducted to test

whether or not the industry-adjusted 5-year medians are significantly different

from zero.

VI. NONPARAMETRIC RESULTS FOR

INDUSTRY-ADJUSTED ...