Empirical Evidence on the Evolution of International Earnings

2002 ◽  
Vol 77 (s-1) ◽  
pp. 115-133 ◽  
Author(s):  
Judy Land ◽  
Mark H. Lang
Keyword(s):  
Interest Rates ◽  
Empirical Evidence ◽  
Cash Flow ◽  
Growth Rates ◽  
Economic Determinants ◽  
Accounting Practice ◽  
Time Period ◽  
Earnings Smoothing ◽  
Country Differences ◽  
Cross Country

We examine whether cross-country differences in earnings-to-price multiples have changed between 1987–1992 and 1994–1999. Our results suggest that earnings multiples became more similar over this time period for the jurisdictions we analyze, although systematic differences remain. Economic determinants of earnings multiples (e.g., growth rates, interest rates, and returns) do not exhibit similar convergence and do not appear to explain the changes. The convergence is robust to controls for cash flow multiples and is apparent in the valuation of accruals. Accrual/cash flow correlations have also become more similar and generally less negative, suggesting a reduction in earnings smoothing. Overall, our evidence suggests convergence in accounting practice.

Broadband Diffusion and its Driving Forces

2011 ◽  
pp. 689-710 ◽  
Author(s):  
Banani Nandi ◽  
Chandana Chakraborty
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Growth And Development ◽  
Driving Forces ◽  
Demand And Supply ◽  
Economic Growth And Development ◽  
Policy Suggestions ◽  
Country Differences ◽  
Potential Impact ◽  
Cross Country

In the light of the emerging consensus on the potential impact of broadband technology on economic growth and development, this chapter analyzes the cross-country differences in growth of broadband technology by examining the key demand and supply factors driving diffusion in the observed countries. In addition, utilizing empirical evidence and country case analyses, the chapter offers tentative policy suggestions for accelerating broadband diffusion under alternative circumstances.

scholarly journals The accuracy of cross-country valuation by multiples using comparables – the cultural aspect

2020 ◽  
Vol 8 (3) ◽  
pp. 23-41
Author(s):  
Finn Schøler
Keyword(s):  
Cultural Differences ◽  
Listed Companies ◽  
Accounting Practice ◽  
Cultural Aspect ◽  
Valuation Method ◽  
Country Differences ◽  
Cross Country ◽  
Selection Of ◽  
Negative Earnings

We study the accuracy of using traditional multiples valuation method in a global setting. The method of comparables refers to the valuation of companies based on multiples of comparable (similar) companies, preferably from same industry. While this may lead to accurate valuations of comparables from one country, it is often not the case for global comparables due to cross-country differences in culture, economics and accounting practice. We selected all listed non-financial companies with non-negative earnings and equity from the global ORBIS-database, i.e. 16,898 companies from 112 countries. PWC’s publication on contemporaneous adoption and use of IFRS, helped us categorise each country’s accounting regime as requiring, permitting or disallowing IFRS for listed companies. Hofstede’s cultural indexes adapted to Gray’s accounting values where used to categorise cultural differences. Finally, we chose the P/E, P/B, P/S, EV/S and EV/EBITDA ratios as our multiples. We find that the traditional focus on industry alone is not the best way to estimate a company’s value based on multiples. Different attitudes towards selection of comparables lead to differences in valuation precision due to differences in accounting tradition and culture in various countries. Consequently, the cultural aspect should be taken into consideration when choosing comparables across countries.  

scholarly journals Law, Endowments and Property Rights

2005 ◽  
Vol 19 (3) ◽  
pp. 61-88 ◽  
Author(s):  
Ross Levine
Keyword(s):  
Property Rights ◽  
Empirical Evidence ◽  
Indigenous Population ◽  
Legal Traditions ◽  
Long Run ◽  
European Colonization ◽  
Sources Of Variation ◽  
Country Differences ◽  
Cross Country ◽  
The Law

While scholars have hypothesized about the sources of variation in property rights for over 2500 years, it is only very recently that researchers have begun to test these theories empirically. This paper reviews both the theory and empirical evidence supporting and refuting the law and endowment views of property rights. The law view holds that historically determined differences in national legal traditions continue to shape cross-country differences in property rights. The endowment view argues that during European colonization, differences in climate, crops, the indigenous population, and the disease environment influenced long-run property rights.

scholarly journals Cross country industry betas

2012 ◽  
Vol 10 (1) ◽  
pp. 629-643
Author(s):  
Alberto Dell’Acqua ◽  
Emanuele Teti ◽  
Leonardo L. Etro ◽  
Marco Boero
Keyword(s):  
Linear Relationship ◽  
Empirical Evidence ◽  
Stock Markets ◽  
Stock Exchange ◽  
Emerging Market ◽  
Industrial Composition ◽  
Industrial Sectors ◽  
Structural Differences ◽  
Country Differences ◽  
Cross Country

We study the differences in the industrial composition between two stock market indices, the Italian FTSE MIB and the Chinese Shanghai Composite Stock Exchange. We argue that differences in the set of industry weights, measured through market capitalization, on different stock markets carry valuable information required for adjusting industry betas in an emerging market context. On the basis of 256 weekly observations of 1,020 companies belonging to 10 industrial sectors on the Italian and Chinese stock markets, we test the hypotheses that statistically significant cross-country differences in industry betas and industry weights exist and that cross-country differences in industry betas are linearly related to cross-country differences in industry weights. The empirical evidence gathered confirms the existence of cross-country structural differences in industry betas and industry weights, but confutes the hypothesis of a linear relationship between the two

Trends and forecasts of the global availability of food

2020 ◽  
Vol 16 (7) ◽  
pp. 1297-1316
Author(s):  
O.N. Terent'eva
Keyword(s):  
High Risk ◽  
Growth Rates ◽  
Statistical Data ◽  
Economic Security ◽  
Agricultural Products ◽  
Mortality And Morbidity ◽  
National Economic ◽  
Production Growth ◽  
Country Analysis ◽  
Cross Country

Subject. The stable supply of food to people is a cornerstone for the national economic security, while a lack of food or its expensiveness may undermine the economy, principles of power, and cause panics and wars. Malnutrition and hunger are critical indicators of the insufficient foods supply. Objectives. The article indicates which countries have high risk of hunger, and predicts its further movement. I also evaluate factual trends in the availability of food across countries. Methods. The study refers to statistical data in public domain, including the FAOSTAT. I apply methods of ranking, abstraction, prediction. Results. I performed the cross-country analysis and discovered that 117 countries demonstrated signs of malnutrition. The article sets forth a technique for splitting countries into five groups by level of hunger risk. The article compares data on hunger in the countries and consequences of mortality and morbidity. I ranked countries by key types of agricultural products and explained their production growth rates for a span of 18 years. I predicted how countries would be ranked in terms of hunger from 2030 to 2050, and found the extent to which the hunger risk will escalate in more flourishing countries. Conclusions and Relevance. Hunger and shortage of food seem invincible in the countries where people are hungry or very hungry. Sometimes it appears almost impossible for respective governments to solve the issue. Triggering the systemic hunger, such factors and premises are beyond control of starving countries. Hence, the international community should provide their support and aid to them.

How Does Firm Size Explain Cross-Country Differences in Ownership Concentration?

2020 ◽  
Author(s):  
Fariborz Moshirian ◽  
Nguyen Thi Thuy ◽  
Jin Yu ◽  
Bohui Zhang
Keyword(s):  
Firm Size ◽  
Ownership Concentration ◽  
Country Differences ◽  
Cross Country

Connections Between Cultures: Using Empirical Distributions for Measuring Cultural Differences

2020 ◽  
pp. 002202212098237
Author(s):  
Wolfgang Messner
Keyword(s):  
Cultural Values ◽  
Cultural Differences ◽  
Distance Measures ◽  
Cultural Variation ◽  
Group Level ◽  
Psychological Phenomena ◽  
Empirical Distributions ◽  
Leibler Divergence ◽  
Country Differences ◽  
Cross Country

The past few decades have seen an explosion in the interest in cultural differences and their impact on many aspects of business management. A noticeable feature of most academic studies and practitioner approaches is the predominant use of national boundaries and group-level averages as delimiters and proxies for culture. However, this largely ignores the significance that intra-country differences and cross-country similarities can have for identifying psychological phenomena. This article argues for the importance of considering intra-cultural variation for establishing connections between two different cultures. It uses empirical distributions of cultural values that occur naturally within a country, thereby making intracultural differences interpretable and actionable. For measuring cross-country differences, the Gini/Weitzman overlapping index and the Kullback-Leibler divergence coefficient are used as difference measures between two distributions. The properties of these measures in comparison to traditional group-level mean-based distance measures are analyzed, and implications for cross-cultural and international business research are discussed.

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