Convexidad en La Relación Precio-Resultado y Precio-Fondos Propios. Fundamentos Teóricos y Evidencia Empírica en El Caso Español

Based on two theoretical works, Burgstahler y Dichev (1997) and Zhang (2000), this paper tests an option-style valuation approach whose main prediction is that market value is a convex function of both earnings and book value, where the function depends on the relative values of earnings and book value (ROE). Consistent with the theoretical predictions I find that: (i) given