Based on Feltham-Ohlson residual income model(Ohlson RIM model), this paper builds a dynamic market position RIM taking into account of important complementary role of market power to enterprises’ value and domestic characteristic of enterprises’ development, which using financial account, namely, unearned revenue to effectively express market position. Then this paper makes empirical analysis using data from 2001 to 2014 in China capital market. The empirical result shows that unearned revenue has an obvious effect on value of enterprises. However, an extreme value appears in its influence curve which performs as an inverted U shape. Overall, as an effective complement to valuation method, a dynamic market-position RIM built in this paper has important theoretical and practical significance in improving development of China’s value investment theory.
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