Download This PaperThe US Equity Valuation Premium, Globalization, and Climate Change Risks
Fisher College of Business Working Paper No. 2023-03-21
Charles A. Dice Working Paper No. 2023-21
HKU Jockey Club Enterprise Sustainability Global Research Institute - Archive
49 Pages Posted: 15 Sep 2023
Date Written: August 24, 2023
Abstract
In the 2000s, US firms have higher valuations than comparable non-US firms listed only outside the US but not non-US firms cross-listed in the US. Though one would expect this US valuation premium to fall over time because of globalization, it widens for firms in developed markets by 36% and falls for firms in emerging markets by 20% after the global financial crisis of 2007-2008. This evolution is explained in part by the decreased valuation of brown firms in other developed countries relative to the US. Other potential explanations are explored and rejected.
Keywords: Financial globalization; corporate valuation; financial crisis; climate risks
JEL Classification: F21, F65, G10, G15, G34
Suggested Citation: Suggested Citation
Rene M. Stulz (Contact Author)
Ohio State University (OSU) - Department of Finance ( email )
2100 Neil Avenue
Columbus, OH 43210-1144
United States
European Corporate Governance Institute (ECGI)
c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium
Craig Doidge
University of Toronto - Rotman School of Management ( email )
105 St. George Street
Toronto, Ontario M5S 3E6
Canada
416-946-8598 (Phone)
HOME PAGE: http://www.rotman.utoronto.ca/FacultyAndResearch/Faculty/FacultyBios/Doidge
