Long-Term Shareholder Returns: Evidence from 64,000 Global Stocks
Financial Analysts Journal, Forthcoming
89 Pages Posted: 14 Oct 2020 Last revised: 7 Mar 2023
There are 2 versions of this paper
Long-Term Shareholder Returns: Evidence from 64,000 Global Stocks
Do Global Stocks Outperform US Treasury Bills?
Date Written: March 6, 2023
Abstract
We study long-run shareholder outcomes for over 64,000 global common stocks during the January 1990 to December 2020 period. We document that the majority, 55.2% of U.S. stocks and 57.4% of non-U.S. stocks, underperform one-month U.S. Treasury bills in terms of compound returns over the full sample. Focusing on aggregate shareholder outcomes, we find that the top-performing 2.4% of firms account for all of the $US 75.7 trillion in net global stock market wealth creation from 1990 to December 2020. Outside the US, 1.41% of firms account for the $US 30.7 trillion in net wealth creation.
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