Evolution of earnings-to-price ratios: International evidence
In this paper, we examine the pattern of historical evolution of international earnings-to-price ratios for a sample of 17 developed markets over the period 1980-2008. Using a measure of distance between earnings-to-price ratios of international stock markets, we find that earnings-to-price ratios of 17 markets have significantly converged toward each other during the sample period. Specifically, the average distance for our sample markets has decreased by about 70% during this period. Our analysis indicates that the convergence in earnings-to-price ratios reflects increasing capital market integration rather than more alignment in industrial structure among these markets.
Year of publication: |
2010
|
---|---|
Authors: | Eun, Cheol S. ; Lee, Jinsoo |
Published in: |
Global Finance Journal. - Elsevier, ISSN 1044-0283. - Vol. 21.2010, 2, p. 125-137
|
Publisher: |
Elsevier |
Keywords: | Earnings-to-price ratio Convergence Capital market integration |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Mean-variance convergence around the world
Eun, Cheol S., (2010)
-
Mean-Variance Convergence around the World
Eun, Cheol S., (2006)
-
Mean–variance convergence around the world
Eun, Cheol S., (2010)
- More ...