The Euro And Corporate Valuations: The Case Of Greece
AbstractThis paper investigates the impact of the euro on corporate valuations in Greece. Previous empirical results for the ten countries that founded the Monetary Union (EMU) uncovered various positive eﬀects of the common currency. Greece who joined EMU later, coming from a weaker macroeconomic background is expected to beneﬁt substantially from the strong commitment of being part of a currency union. Our results show comparably stronger impact of the euro for Greece than for the founding members of EMU. The common currency has brought a 24% increase in Tobin’s q for Greek companies and the investment ratio has increased by 21%. The wave of investment was primarily ﬁnanced by equity issues.
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Bibliographic InfoArticle provided by Centre of Financial and Monetary Research "Victor Slavescu" in its journal Studii Financiare (Financial Studies).
Volume (Year): 13 (2009)
Issue (Month): 1 (March)
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More information through EDIRC
European Integration; Euro; Corporate Valuations;
Find related papers by JEL classification:
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Liliane Karlinger, 2002. "The Impact of Common Currencies on Financial Markets: A Literature Review and Evidence from the Euro Area," Working Papers 02-35, Bank of Canada.
- Arturo Bris & Yrjö Koskinen & Mattias Nilsson, 2009.
"The Euro and Corporate Valuations,"
Review of Financial Studies,
Society for Financial Studies, vol. 22(8), pages 3171-3209, August.
- Bris, Arturo & Koskinen, Yrjö & Nilsson, Mattias, 2003. "The Euro is Good After All: Evidence from Corporate Valuations," CEPR Discussion Papers 3910, C.E.P.R. Discussion Papers.
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