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Analyzing Asian Countries and Industries Performance and Cross-Country Influence on Firm Multiples

Saingam, Sakara and Lim, Hooipin (2008)
Department of Economics
Abstract
To our knowledge, this paper first analyze firms multiples by using relative valuation and employed them as indicator of Asian market performance after 1997 Asian crisis. The observations range from year 1997 to year 2007 by defining a sample of firms in 13 industries from 10 countries located in Asia. We considered five widely used multiples in our research: Price per Sales, ROIC, EV/ EBITDA, Price per Earnings per Share (PER) and Market-to-book (PTBV) ratios. We explicitly compare yearly, countries and industries performance in Asia. We find that the Asian economies and equity markets are rather overstating and fluctuating. We attribute the result to country specific issues. Later on we examine the influence of country membership on... (More)
To our knowledge, this paper first analyze firms multiples by using relative valuation and employed them as indicator of Asian market performance after 1997 Asian crisis. The observations range from year 1997 to year 2007 by defining a sample of firms in 13 industries from 10 countries located in Asia. We considered five widely used multiples in our research: Price per Sales, ROIC, EV/ EBITDA, Price per Earnings per Share (PER) and Market-to-book (PTBV) ratios. We explicitly compare yearly, countries and industries performance in Asia. We find that the Asian economies and equity markets are rather overstating and fluctuating. We attribute the result to country specific issues. Later on we examine the influence of country membership on cross countries multiples comparison. Differences in country membership could be explained by industry mixture or pure country factor in the country. Our results show that country membership is more influential but the degree of pressure on the multiples is varying. (Less)
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author
Saingam, Sakara and Lim, Hooipin
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Asia, relative valuation, multiples, cross country, differences, Economics, econometrics, economic theory, economic systems, economic policy, Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik
language
English
id
1334551
date added to LUP
2008-06-13
date last changed
2010-08-03 10:51:48
@misc{1334551,
  abstract     = {To our knowledge, this paper first analyze firms multiples by using relative valuation and employed them as indicator of Asian market performance after 1997 Asian crisis. The observations range from year 1997 to year 2007 by defining a sample of firms in 13 industries from 10 countries located in Asia. We considered five widely used multiples in our research: Price per Sales, ROIC, EV/ EBITDA, Price per Earnings per Share (PER) and Market-to-book (PTBV) ratios. We explicitly compare yearly, countries and industries performance in Asia. We find that the Asian economies and equity markets are rather overstating and fluctuating. We attribute the result to country specific issues. Later on we examine the influence of country membership on cross countries multiples comparison. Differences in country membership could be explained by industry mixture or pure country factor in the country. Our results show that country membership is more influential but the degree of pressure on the multiples is varying.},
  author       = {Saingam, Sakara and Lim, Hooipin},
  keyword      = {Asia,relative valuation,multiples,cross country,differences,Economics, econometrics, economic theory, economic systems, economic policy,Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik},
  language     = {eng},
  note         = {Student Paper},
  title        = {Analyzing Asian Countries and Industries Performance and Cross-Country Influence on Firm Multiples},
  year         = {2008},
}