The Euro and Corporate Valuations

• 成果类型: Article
• 署名作者: Bris, Arturo; Koskinen, Yrjoe; Nilsson, Mattias
• 署名单位: Boston University; University of Colorado System; University of Colorado Boulder
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhn101
• 发表日期: 2009
• 页码: 3171
• 关键词: EXCHANGE-RATE EXPOSURE; term-structure; HOME BIAS; EQUITY OWNERSHIP; market valuation; UNITED-STATES; TRADE; diversification; forecasts; return

摘要

In this paper, we study the changes in corporate valuations induced by the adoption of the euro as the common currency in Europe. We use corporate-level data from seventeen European countries, of which eleven adopted the euro. We show that the introduction of the euro has increased Tobin's Q-ratios by 17.1% in the {euro-area} countries that previously had weak currencies. Part of the increase in corporate valuations is explained by the decrease in interest rates and by the decrease in the cost of equity. The increases in Tobin's Q are larger for firms that would be harmed by currency devaluations.