Earnings and Equity Valuation in the Biotech Industry: Theory and Evidence
研究盈利与股价关系如何随公司投资不确定性和质量变化，基于1980-2000年301家生物技术IPO公司的数据，发现该关系呈V形且随生命周期变化，非财务信息也影响盈利定价。
We examine how the price‐earnings relation varies with the uncertainty about and the quality of a firm's investments. We develop a real option valuation framework to capture investment and abandonment options in the research‐intensive biotechnology industry. We hypothesize that the price‐earnings relation will be V‐shaped and change over the firm 's life cycle. We also show how nonfinancial information affects the pricing of earnings. Our empirical findings are based on a sample of 301 biotechnology firms that made IPOs between 1980 and 2000, and are generally consistent with our predictions.