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

101 Pages Posted: 14 Oct 2020 Last revised: 21 Oct 2020

See all articles by Hendrik Bessembinder

Hendrik Bessembinder

Arizona State University; W.P. Carey School of Business

Te-Feng Chen

Hong Kong Polytechnic University

Goeun Choi

Arizona State University (ASU) - Finance Department

K.C. John Wei

Hong Kong Polytechnic University

Multiple version iconThere are 2 versions of this paper

Date Written: October 12, 2020

Abstract

We study mean monthly returns and compound long-run returns to over 64,000 global common stocks during the January 1990 to June 2020 period. We highlight the important practical distinctions between arithmetic, geometric, and dollar-weighted monthly returns. We also document that the majority, 56.6% of U.S. stocks and 61.3% of non-U.S. stocks, under-perform 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 1.5% of firms account for all of the $US 56.2 trillion in net global stock market wealth creation from 1990 to mid-2020. Outside the US, less than one percent of firms account for the $US 20.1 trillion in net wealth creation.

Suggested Citation

Bessembinder, Hendrik (Hank) and Chen, Te-Feng and Choi, Goeun and Wei, Kuo-Chiang (John), Long-Term Shareholder Returns: Evidence from 64,000 Global Stocks (October 12, 2020). Available at SSRN: https://ssrn.com/abstract=3710251 or http://dx.doi.org/10.2139/ssrn.3710251

Hendrik (Hank) Bessembinder (Contact Author)

Arizona State University ( email )

PO Box 873906
Tempe, AZ 85207
United States

W.P. Carey School of Business ( email )

W. P. Carey School of Business
PO Box 873906
Tempe, AZ 85287-3906
United States

HOME PAGE: http://https://wpcarey.asu.edu/people/profile/2717225

Te-Feng Chen

Hong Kong Polytechnic University ( email )

Hung Hom, Kowloon
Hong Kong
+852 3400 3856 (Phone)

Goeun Choi

Arizona State University (ASU) - Finance Department ( email )

W. P. Carey School of Business
PO Box 873906
Tempe, AZ 85287-3906
United States

Kuo-Chiang (John) Wei

Hong Kong Polytechnic University ( email )

11 Yuk Choi Rd
Hung Hom
Hong Kong

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