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

Finance

Research output: Contribution to journal › Article › peer-review

4 Scopus citations

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 (US)
Pages (from-to)	33-63
Number of pages	31
Journal	Financial Analysts Journal
Volume	79
Issue number	3
DOIs	https://doi.org/10.1080/0015198X.2023.2188870
State	Published - 2023

Keywords

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

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

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10.1080/0015198X.2023.2188870

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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.",

keywords = "compound returns, long-term returns, return skewness, stock investing and shareholder wealth",

author = "Hendrik Bessembinder and Chen, {Te Feng} and Goeun Choi and Wei, {K. C.John}",

note = "Funding Information: The authors thank William Goetzmann (executive editor), Daniel Giamouridis (co-editor), and two anonymous referees for constructive and insightful comments and suggestions that have significantly improved the article. Bessembinder acknowledges financial support from Baillie Gifford & Company. Wei acknowledges financial support from the Research Grants Council of the Hong Kong SAR, China (GRF15505518). Publisher Copyright: {\textcopyright} 2023 CFA Institute. All rights reserved.",

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doi = "10.1080/0015198X.2023.2188870",

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AU - Choi, Goeun

AU - Wei, K. C.John

N1 - Funding Information: The authors thank William Goetzmann (executive editor), Daniel Giamouridis (co-editor), and two anonymous referees for constructive and insightful comments and suggestions that have significantly improved the article. Bessembinder acknowledges financial support from Baillie Gifford & Company. Wei acknowledges financial support from the Research Grants Council of the Hong Kong SAR, China (GRF15505518). Publisher Copyright: © 2023 CFA Institute. All rights reserved.

PY - 2023

Y1 - 2023

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.

KW - compound returns

KW - long-term returns

KW - return skewness

KW - stock investing and shareholder wealth

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

Abstract

Keywords

ASJC Scopus subject areas

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