Titre
Earnings and Equity Valuation in the Biotech Industry: Theory and Evidence
Type
article
Institution
UNIL/CHUV/Unisanté + institutions partenaires
Périodique
Auteur(s)
Joos, P.
Auteure/Auteur
Zhdanov, A.
Auteure/Auteur
Liens vers les personnes
Liens vers les unités
Statut éditorial
Publié
Date de publication
2008
Volume
37
Numéro
3
Première page
431
Dernière page/numéro d’article
459
Peer-reviewed
Oui
Langue
anglais
Résumé
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.
PID Serval
serval:BIB_6FF9D3C4815F
Date de création
2010-11-12T11:07:02.277Z
Date de création dans IRIS
2025-05-21T03:37:24Z