Long-Term Shareholder Returns: Evidence from 64,000 Global Stocks

Hendrik Bessembinder; Te Feng Chen; Goeun Choi; K. C.John Wei

doi:10.1080/0015198X.2023.2188870

Long-Term Shareholder Returns: Evidence from 64,000 Global Stocks

Hendrik Bessembinder
, Te Feng Chen
, Goeun Choi
, K. C.John Wei

Research output: Journal article publication › Journal article › Academic research › peer-review

11 Citations (Scopus)

Abstract

We study long-run shareholder outcomes for more than 64,000 global common stocks during the January 1990 to December 2020 period. The majority, 55.2% of U.S. stocks and 57.4% of non-U.S. stocks, underperform one-month U.S. Treasury bills in terms of compound returns over the full sample. Focusing on aggregate shareholder outcomes, we find that the top-performing 2.4% of firms account for all of the $US 75.7 trillion in net global stock market wealth creation from 1990 to December 2020. Outside the United States, 1.41% of firms account for the $US 30.7 trillion in net wealth creation.

Original language	English
Pages (from-to)	33-63
Number of pages	31
Journal	Financial Analysts Journal
Volume	79
Issue number	3
Early online date	21 Apr 2023
DOIs	https://doi.org/10.1080/0015198X.2023.2188870
Publication status	Published - Apr 2023

Keywords

compound returns
long-term returns
return skewness
stock investing and shareholder wealth

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

More information

10.1080/0015198X.2023.2188870

Cite this

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title = "Long-Term Shareholder Returns: Evidence from 64,000 Global Stocks",

abstract = "We study long-run shareholder outcomes for more than 64,000 global common stocks during the January 1990 to December 2020 period. The majority, 55.2\% of U.S. stocks and 57.4\% of non-U.S. stocks, underperform one-month U.S. Treasury bills in terms of compound returns over the full sample. Focusing on aggregate shareholder outcomes, we find that the top-performing 2.4\% of firms account for all of the \$US 75.7 trillion in net global stock market wealth creation from 1990 to December 2020. Outside the United States, 1.41\% of firms account for the \$US 30.7 trillion in net wealth creation.",

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N2 - We study long-run shareholder outcomes for more than 64,000 global common stocks during the January 1990 to December 2020 period. The majority, 55.2% of U.S. stocks and 57.4% of non-U.S. stocks, underperform one-month U.S. Treasury bills in terms of compound returns over the full sample. Focusing on aggregate shareholder outcomes, we find that the top-performing 2.4% of firms account for all of the $US 75.7 trillion in net global stock market wealth creation from 1990 to December 2020. Outside the United States, 1.41% of firms account for the $US 30.7 trillion in net wealth creation.

AB - We study long-run shareholder outcomes for more than 64,000 global common stocks during the January 1990 to December 2020 period. The majority, 55.2% of U.S. stocks and 57.4% of non-U.S. stocks, underperform one-month U.S. Treasury bills in terms of compound returns over the full sample. Focusing on aggregate shareholder outcomes, we find that the top-performing 2.4% of firms account for all of the $US 75.7 trillion in net global stock market wealth creation from 1990 to December 2020. Outside the United States, 1.41% of firms account for the $US 30.7 trillion in net wealth creation.

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KW - return skewness

KW - stock investing and shareholder wealth

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ER -

Long-Term Shareholder Returns: Evidence from 64,000 Global Stocks

Abstract

Keywords

ASJC Scopus subject areas

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