Experience Stern | Faculty & Research

Excerpt from Barron's -- "Blame a ‘70s-era accounting rule that says companies must expense 'knowledge investments' (intangible investments like research and development) as they occur. That depresses earnings and results in shares trading at discounts. The effect was first discovered in the ‘90s by NYU’s Baruch Lev, then became the subject of greater study by Gavekal, which oversees combined assets of $1.7 billion-plus."

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