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The Euro And Corporate Valuations: The Case Of Greece


  • Pungulescu, Crina

    () (Business School -ESEC, Groupe Ecole Sup´erieure de Commerce de Toulouse, Department of Economics-Finance)

  • Tümer Alkan, Günseli

    () (Vrije Universiteit Amsterdam, Department of Finance, De Boelelaan 1105, 1081 HV Amsterdam, The Netherlands)


This 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.

Suggested Citation

  • Pungulescu, Crina & Tümer Alkan, Günseli, 2009. "The Euro And Corporate Valuations: The Case Of Greece," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 13(1), pages 131-152, March.
  • Handle: RePEc:vls:finstu:v:13:y:2009:i:1:p:131-152

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    References listed on IDEAS

    1. 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.
    2. Liliane Karlinger, 2002. "The Impact of Common Currencies on Financial Markets: A Literature Review and Evidence from the Euro Area," Staff Working Papers 02-35, Bank of Canada.
    3. 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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    More about this item


    European Integration; Euro; Corporate Valuations;

    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


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