A Study Of Sustainable Competitive Advantage From The Prespective Of Firm Value And Dynamic Earnings Informativeness

The decisions of controller of corporation determine the behavior and consequences of the investment decisions and finance decisions of the corporation, then the interests of non-controller and other stakeholders of the corporation. In specific institution arrangement, controller have motives to embezzle the interests of other stakeholders, the motives can be translated into tunneling behaviors such as connected transaction and appropriation and so on.This paper focus on the idea that a company’s value is the combination of continuing value and option value based on the existing literature of capital structure optimization, sustainable competitiveness, corporate earnings and the value of the current literature,. Among them, going concern value ref ers to the company to rely on existing resources sustainable use, the use of their own resources(including technology, capital and entrepreneurial ability) can create value, the value is equal to the expected income discounted future to the current total. While the conversion option reflects the company’s "change"(including the sale of the company, change the company’s business strategy and bankruptcy liquidation etc.), then makes the overall value is higher than the possibility of going concern value. At the same time, this paper has found that there is a close relationship between the capital structure and the sustainable competitive advantage, and the research trend of the thought of sustainable competitive advantage is an intermediate variable of enter prise surplus. So try to build "optimization to sustainable competitive advantage, enterprise surplus" theory of capital structure, so as to convert the option to optimize the capital structure, and the value of contact form and corporate earnings, and add the nonlinear dynamic assumptions of the conversion option, so the study of earnings(conversion option the nonlinear relationship between value) and current earnings information as possible.Analysis of the going concern value and conversion option value based on linear pricing model, this paper based on the traditional correction, respectively from two aspects of the nonlinear effect is introduced into the original linear model: firstly, considering the effect of increasing marginal cost of the company i n the case of continuing operations, and the introduction of tax friction; secondly, the option value into the discounted cash flow framework, namely = + . A new model to describe the relationship between the interests of the company on the conca vity of the value of its operating income: the interests of the company value as the company’s operating income is increasing, and the contribution margin has decreased. The financial data China A shares of listing Corporation: Based on the results of sing le industry, pricing model described in the basic set up; but because of the heterogeneity, nonlinear cointegration relationship does not exist the same between the different sectors of the business income and equity value.The nonlinear relationship between the current earnings and excess returns based on the nonlinear, through interpretation of the financing modes selection. In this paper, the excess return dynamic introduced in the process of continuous non zero net present value of an investment, the profitability and the company’s financing capacity to adapt to the impact of investment decision, the nonlinear dynamic model of information so as to construct the excess returns. The introduction of capital investment of excess earnings dynamic model assume s that the investment decision is not only affected by the excess earnings guidance signal, but also by the ability to adapt to the financing constraints, and the excess profit ability reflects the continued economic rent, which provides useful information for future excess profitability, expected future excess profit ability it will affect the future of capital investment. Theoretical analysis shows that in the case of the capital investment and financing in biochemistry, future excess returns and the exce ss return is nonlinear dynamic information, rather than a simple linear information dynamics. Between stage +1 and stage excess return excess returns by financing the ability to adapt to the slope and curvature effect, when the enterprises only need a small amount of financing, equity financing is better than bond financing; and when a large amount of financing, bond financing is better than equity financing. In order to Chinese listing Corporation as a sample group of piecewise linear regression provi des support for the theoretical analysis in this paper, the nonlinear dynamic information.