SSRN Author: Stefan J. ReichelsteinStefan J. Reichelstein SSRN Content
http://www.ssrn.com/author=20204
http://www.ssrn.com/rss/en-usMon, 28 Mar 2016 01:24:09 GMTeditor@ssrn.com (Editor)Mon, 28 Mar 2016 01:24:09 GMTwebmaster@ssrn.com (WebMaster)SSRN RSS Generator 1.0New: Structural Properties of the Price-to-Earnings and Price-to-Book RatiosWe examine the structural properties of a firm's price-to-earnings (P/E) and price-to-book (P/B) ratios and the relation between these two ratios. A benchmark result is obtained under the hypothesis that firms use replacement cost accounting to value their operating assets, so that the P/B ratio coincides with Tobin's q. The firm's P/E ratio can then be expressed as a convex combination of the P/E ratios suggested respectively by the permanent earnings model and the Gordon growth model, with the the relative weight to be placed on these two endpoints determined entirely by Tobin's q. Under current financial reporting rules, the accounting for operating assets is likely to be more conservative than replacement cost accounting. Our findings characterize how the magnitude and behavior of the P/E and P/B ratios are jointly shaped by several key variables, including both past and anticipated future growth, economic profitability, and accounting conservatism.
http://www.ssrn.com/abstract=2754772
http://www.ssrn.com/1482507.htmlSun, 27 Mar 2016 06:58:50 GMTNew: Cost- and Price Dynamics of Solar PV ModulesThis paper develops a model framework and a corresponding empirical inference procedure for estimating long-run marginal cost in industries where production costs decline over time. In the context of the solar photovoltaic module industry, we rely on firm-level financial accounting data to estimate the long-run marginal cost of PV modules for the years 2008 -2013. During those years, the industry experienced both sharp price declines and significant expansions of manufacturing capacity. By comparing the trajectory of average sales prices with the long-run marginal cost estimates, we are in a position to quantify the extent to which actual price declines were attributable to excess capacity as opposed to reductions in production costs. While we find a significant effect attributable to excess capacity for some quarters in our sample period, the dynamics of this industry also points to a rate of cost reductions that is even faster than the 80% learning curve which has described the ...
http://www.ssrn.com/abstract=2727089
http://www.ssrn.com/1467270.htmlThu, 04 Feb 2016 10:42:31 GMT