AgPa #11: Concentrated Stock Markets (2/7)
Long-Term Shareholder Returns: Evidence from 64,000 Global Stocks (2021)
Hendrik Bessembinder, Ta-Feng Chen, Goeun Choi, K.C. John Wei
SSRN Working Paper, URL
The second of seven AGNOSTIC Papers about the extreme concentration within stock markets. This one goes beyond the US and examines global stock markets between 1990 and 2020. The pattern of extreme concentration is very similar for 41 countries beside the US and in some cases even stronger.
- Longer investment-horizons lead to extremer return distributions – also outside the US
- Just 2.4% of all companies created the entire net wealth in global stock markets
- All stock markets are concentrated but there are regional differences