《1---Eamings》.pdf

Eamings, Book Values, and Dividends in Equity Valuation* JAMES A. OHLSON Columbia University Abstract. The paper develops and analyzes a model of a firms market value as it relates to contemporaneous and future eamings, book values, and dividends. Two owners egui- ty accounting constructs provide the underpinnings of the model : the clean surplus rela- tion applies, and dividends reduce current book value but do not affect current eamings . The model satisfies many appealing properties, and it provides a useful benchmark when one conceptualizes how market value relates to accounting data and other infonnation. Resume. Lauteur 6Iabore et analy.se un modele dans lequel il conceptualise la relation entre Ia valeur marchande dune entreprise et ses benefices, ses valeurs comptables et ses dividendes actuels et futurs. Deux postulats de la comptabilisation des capitaux propres servent de charpente au module : a) la relation du resultat global sapplique et b) les div- idendes reduisent la valeur comptable actuelle sans influer, cependant, sur les benefices actuels. Le modele prfisente de nombreuses proprietes interessantes et il peut, fort utile- ment, servir de repere dans la conceptualisation de la relation entre la valeur marchande et les donnees comptables et autres renseignements. Accounting assigns an important integrative function to the statement of changes in owners equity. The statement includes the bottom-line items in the balance sheet atid income statement—^book value and eamings— and its format requires the change in book value to equal earnings minus dividends (net of capital contributions). We refer to this relation as the clean surplus relation because, as articulated, all changes in assetsAiabil- ities unrelated to dividends must pass through the income statement. Acc