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Fama and French’s (1999) internal rate of return method is applied to Datastream data from 1993-2001 for 81 non-financial firms listed on the New Zealand Stock Exchange. The nominal return on value is 7.09%. The real return on value is 5.07%. The nominal return on cost is 11.59%. The real return on cost is 9.48%. The 10 former state-owned enterprises have nominal and real returns significantly higher than the 71other publicly-listed companies and their capital structures and market-to-book values differ significantly. Return on corporate investment has been profitable but real and nominal compound returns and simple returns have declined over time.

Keywords: privatization ; cost of capital ; New Zealand

Subject(s): Financial Economics

Industrial Organization

Research Methods/ Statistical Methods

Issue Date: 2005-06

Publication Type: Journal Article

PURL Identifier: http://purl.umn.edu/143482 Published in: Review of Applied Economics, Volume 01, Number 1 Page range: 1-25

Total Pages: 25

JEL Codes: G15. G32

Series Statement: Vol.1

No.1

Record appears in: Lincoln University > Review of Applied Economics





Autor: McGraw, Patricia A.

Fuente: http://ageconsearch.umn.edu/record/143482?ln=en







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