Earnings, adaptation and equity value.
提出并检验了一个期权式估值模型，预测权益价值是收益和账面价值的凸函数，且函数形式取决于两者相对大小；当收益/账面价值高时收益更重要，低时账面价值更重要，实证结果支持该凸性预测。
Abstract This paper develops and tests an option-style valuation model, whose main prediction is that equity value is a convex function of both earnings and book value, where the function depends on the relative values of earnings and book value. Earnings provides a measure of how the firm's resources are currently used. Book value provides a measure of the value of the firm's resources, independent of how the resources are currently used. When the ratio earnings/book value is high, the firm is likely to continue its current way of using resources, and earnings is the more important determinant of equity value. When earnings/book value is low, the firm is more likely to exercise the option to adapt its resources to a superior alternative use, and book value becomes the more important determinant of equity value. Evidence from a variety of empirical specifications is consistent with the convexity prediction.