eng Science and Education Publishing Journal of Finance and Economics 2328-7276 2020-11-08 8 6 244 249 10.12691/jfe-8-6-2 JFE2020862 article Wangyin Hu huwy17@mails.tsinghua.edu.cn 1 Guangtao Xia 2 Chi Zhang 3 School of Social Sciences, Tsinghua University, Beijing, P. R. China Institute of World Economics and Politics, Chinese Academy of Social Sciences, Beijing, P. R. China Economic Research and Analytics Division, New Development Bank, Shanghai, P. R. China This paper discusses the concepts and measurements of valuation effects of a nation¡¯s external wealth, which has become an important research focus in light of the deepening globalization. Further, it clarified the connections and heterogeneity between valuation effects and three related concepts, dark matter, excess return and financial adjustment, under a uniform theoretical model. It argues that although closely related, these concepts are different in definitions and measurements and the misuse of them in recent research has led to misunderstanding, ambiguity, and confusion. The detailed analysis in this paper will benefit the subsequent academic and policy research by solidifying the conceptual framework in the field of studies. http://pubs.sciepub.com/jfe/8/6/2/jfe-8-6-2.pdf valuation effects dark matter excess return financial adjustment