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Record W3121133866 · doi:10.34989/swp-2003-6

Valuation of Canadian- vs. U.S.-Listed Equity: Is There a Discount?

2021· preprint· en· W3121133866 on OpenAlex

Why this work is in the frame

A frame that forgets how it found something cannot be audited. These are the routes that admitted this work.

aboutThe title or abstract carries a Canadian signal from the geographic lexicon.
no affNo Canadian affiliation: this work is invisible to an affiliation-only frame.
No Canadian affiliation. An affiliation-only frame, the usual design, would never have seen this work. It is one of the works that make the case for inverting the frame.

Bibliographic record

VenueRePEc: Research Papers in Economics · 2021
Typepreprint
Languageen
FieldBusiness, Management and Accounting
TopicFinancial Reporting and Valuation Research
Canadian institutionsnot available
Fundersnot available
KeywordsValuation (finance)Equity (law)BusinessProfitability indexMarket valuePre-money valuationFinancial economicsEquity ratioMarket liquidityEquity capital marketsReturn on equityEconomicsMonetary economicsAccountingFinance

Abstract

fetched live from OpenAlex

The authors examine how the valuation multiples assigned to the equity of Canadian-listed firms compare with the equity of comparable firms listed in the United States. They find that Canadian-listed firms trade at a discount to U.S.-listed firms across a range of valuation measures. Differences in accounting do not explain this discount, based on a comparison of Canadian interlisted firms that report under both Canadian and U.S. generally accepted accounting principles. This discount exists despite Canadian-listed firms having a lower cost of equity and higher profitability than comparable U.S-listed firms. Consistent with theory, part of the differences in valuation are explained by company-specific factors, such as industry, firm size, cost of equity, or profitability. The authors also find that characteristics of the stock market where the share is listed affect valuation, such as secondary market liquidity and the relative performance of the overall equity market. They find that a country discount persists after controlling for these company-specific and market-specific factors, which suggests that Canadian and U.S. financial markets remain segmented.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.007
metaresearch head score (Gemma)0.004
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesMeta-epidemiology (narrow)
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Other design · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.801
Threshold uncertainty score1.000

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0070.004
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0010.000
Bibliometrics0.0030.001
Science and technology studies0.0000.000
Scholarly communication0.0010.000
Open science0.0010.002
Research integrity0.0000.001
Insufficient payload (model declined to judge)0.0010.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.141
GPT teacher head0.370
Teacher spread0.229 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it