Earnings Momentum, Adaptation Value, and Nonlinearities in the Valuation of Chinese Equity Stocks

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dc.contributor.author Dong, Y en
dc.contributor.author Lubberink, M en
dc.contributor.author Ma, Diandian en
dc.contributor.author Tippett, M en
dc.date.accessioned 2019-10-05T08:06:26Z en
dc.date.issued 2019-06-17 en
dc.identifier.issn 0001-3072 en
dc.identifier.uri http://hdl.handle.net/2292/48404 en
dc.description.abstract We demonstrate that when the variables comprising a firm's investment opportunity set depend on their past values then the present value of the cash flows the firm expects to earn will be stated in terms of the levels and the momentum of the affected variables. It is also shown that the market value of a firm's equity is comprised of the present value of the cash flows it expects to earn from operating under its existing investment opportunity set plus the value of the real options the firm possesses to modify or even completely change its existing investment opportunity set. Our empirical analysis, based on both Chinese and US data, shows that earnings momentum and the adaptation and growth options typically available to firms all appear to have a significant impact on equity prices. en
dc.publisher Wiley en
dc.relation.ispartofseries Abacus en
dc.rights Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. en
dc.rights.uri https://researchspace.auckland.ac.nz/docs/uoa-docs/rights.htm en
dc.title Earnings Momentum, Adaptation Value, and Nonlinearities in the Valuation of Chinese Equity Stocks en
dc.type Journal Article en
dc.identifier.doi 10.1111/abac.12145 en
pubs.issue 2 en
pubs.begin-page 333 en
pubs.volume 53 en
dc.rights.holder Copyright: The author en
pubs.end-page 361 en
dc.rights.accessrights http://purl.org/eprint/accessRights/RestrictedAccess en
pubs.subtype Article en
pubs.elements-id 767311 en
pubs.org-id Business and Economics en
pubs.org-id Graduate School of Management en
pubs.org-id Business Masters en
pubs.record-created-at-source-date 2019-04-02 en
pubs.online-publication-date 2019-02-07 en

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