债务杠杆财务报表分析外文翻译文献.docx

债务杠杆财务报表分析外文翻译文献.docx

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债务杠杆财务报表分析外文翻译文献

中英文对照外文翻译文献

（文档含英文原文和中文翻译）

原文：

FinancialStatementAnalysisofLeverageandHowItInformsAboutProtabilityandPrice-to-BookRatios

Abstract

Thispaperpresentsafinancialstatementanalysisthatdistinguishesleveragethatarisesinfinancingactivitiesfromleveragethatarisesinoperations.Theanalysisyieldstwoleveragingequations,oneforborrowingtofinanceoperationsandoneforborrowinginthecourseofoperations.Theseleveragingequationsdescribehowthetwotypesofleverageaffectbookratesofreturnonequity.Anempiricalanalysisshowsthatthefinancialstatementanalysisexplainscross-sectionaldifferencesincurrentandfutureratesofreturnaswellasprice-to-bookratios,whicharebasedonexpectedratesofreturnonequity.Thepaperthereforeconcludesthatbalancesheetlineitemsforoperatingliabilitiesarepriceddifferentlythanthosedealingwithfinancingliabilities.Accordingly,financialstatementanalysisthatdistinguishesthetwotypesofliabilitiesinformsonfutureprofitabilityandaidsintheevaluationofappropriateprice-to-bookratios.

Keywords:

financingleverage;operatingliabilityleverage;rateofreturnonequity;price-to-bookratio

Leverageistraditionallyviewedasarisingfromfinancingactivities:

Firmsborrowtoraisecashforoperations.Thispapershowsthat,forthepurposesofanalyzingprofitabilityandvaluingfirms,twotypesofleveragearerelevant,oneindeedarisingfromfinancingactivitiesbutanotherfromoperatingactivities.Thepapersuppliesafinancialstatementanalysisofthetwotypesofleveragethatexplainsdifferencesinshareholderprofitabilityandprice-to-bookratios.

Thestandardmeasureofleverageistotalliabilitiestoequity.However,whilesomeliabilities—likebankloansandbondsissued—areduetofinancing,otherliabilities—liketradepayables,deferredrevenues,andpensionliabilities—resultfromtransactionswithsuppliers,customersandemployeesinconductingoperations.Financingliabilitiesaretypicallytradedinwell-functioningcapitalmarketswhereissuersarepricetakers.Incontrast,firmsareabletoaddvalueinoperationsbecauseoperationsinvolvetradingininputandoutputmarketsthatarelessperfectthancapitalmarkets.So,withequityvaluationinmind,thereareapriorireasonsforviewingoperatingliabilitiesdifferentlyfromliabilitiesthatariseinfinancing.

Ourresearchaskswhetheradollarofoperatingliabilitiesonthebalancesheetispriceddifferentlyfromadollaroffinancingliabilities.Asoperatingandfinancingliabilitiesarecomponentsofthebookvalueofequity,thequestionisequivalenttoaskingwhetherprice-to-bookratiosdependonthecompositionofbookvalues.Theprice-to-bookratioisdeterminedbytheexpectedrateofreturnonthebookvalueso,ifcomponentsofbookvaluecommanddifferentpricepremiums,theymustimplydifferentexpectedratesofreturnonbookvalue.Accordingly,thepaperalsoinvestigateswhetherthetwotypesofliabilitiesareassociatedwithdifferencesinfuturebookratesofreturn.

Standardfinancialstatementanalysisdistinguishesshareholderprofitabilitythatarisesfromoperationsfromthatwhicharisesfromborrowingtofinanceoperations.So,returnonassetsisdistinguishedfromreturnonequity,withthedifferenceattributedtoleverage.However,inthestandardanalysis,operatingliabilitiesarenotdistinguishedfromfinancingliabilities.Therefore,todevelopthespecificationsfortheempiricalanalysis,thepaperpresentsafinancialstatementanalysisthatidentifiestheeffectsofoperatingandfinancingliabilitiesonratesofreturnonbookvalue—andsoonprice-to-bookratios—withexplicitleveragingequationsthatexplainwhenleveragefromeachtypeofliabilityisfavorableorunfavorable.

Theempiricalresultsinthepapershowthatfinancialstatementanalysisthatdistinguishesleverageinoperationsfromleverageinfinancingalsodistinguishesdifferencesincontemporaneousandfutureprofitabilityamongfirms.Leveragefromoperatingliabilitiestypicallyleversprofitabilitymorethanfinancingleverageandhasahigherfrequencyoffavorableeffects.Accordingly,foragiventotalleveragefrombothsources,firmswithhigherleveragefromoperationshavehigherprice-to-bookratios,onaverage.Additionally,distinctionbetweencontractualandestimatedoperatingliabilitiesexplainsfurtherdifferencesinfirms’profitabilityandtheirprice-to-bookratios.

Ourresultsareofconsequencetoananalystwhowishestoforecastearningsandbookratesofreturntovaluefirms.Thoseforecasts—andvaluationsderivedfromthem—depend,weshow,onthecompositionofliabilities.Thefinancialstatementanalysisofthepaper,supportedbytheempiricalresults,showshowtoexploitinformationinthebalancesheetforforecastingandvaluation.

Thepaperproceedsasfollows.Sect