Do U.S. Firms Trade at a Valuation Premium? A Comparison with European Firms

Rezai, Alia
Grauntanu, Anastasia-Gabriela
University of Gothenburg/Graduate Schooleng
Göteborgs universitet/Graduate Schoolswe
2026-07-02T11:45:29Z
2026-07-02
MSc in Finance
This paper examines whether U.S. firms exhibit a valuation premium relative to devel oped market European firms. This issue is important for understanding cross-country differences in capital allocation and the cost of capital. Using panel data on 701 firms from 2000 to 2025, we estimate a random effects model with Tobin’s Q as the dependent variable. The main contribution is a firm-level U.S.-Europe comparison that combines selected firm characteristics and industry effects. The results show that a statistically significant U.S. valuation premium persists after controlling for the factors included in the model.
https://hdl.handle.net/2077/92312
eng
2026:19
SocialBehaviourLaw
Valuation Gap
US GAAP
IFRS, Tobin’s Q
Do U.S. Firms Trade at a Valuation Premium? A Comparison with European Firms
Text
Master 2-years
H2

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