difference between the price and book value of equity, P – B, is not affected by leverage if debt is measured at market value on … the balance sheet (which in most cases is a reasonable approximation); the difference between price and book value is due … – the book value of net operating assets divided by their market value – serves as a proxy for operating risk under the …

aggregate book value of firms in its region to the aggregate risk tolerance of investors in its region. We test this proposition … interest comes from differences across regions in aggregate book value per capita. Regions with low population density …

-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 a book value, the market value is an increasing function of earnings; (ii) given a value of earnings, the …