International Evidence on the Equity Premium Puzzle and Time Discounting

Marc Oliver Rieger (), Thorsten Hens and Mei Wang
Additional contact information
Marc Oliver Rieger: University of Trier, Germany
Thorsten Hens: University of Zurich, Switzerland
Mei Wang: WHU Otto Beisheim school of Economics, Germany

Multinational Finance Journal, 2013, vol. 17, issue 3-4, 149-163

Abstract: We examine time discounting factors in an international survey. Our analysis reveals a significant relationship between time discount factors and historical equity premiums across 27 countries. This result implies that higher historical equity risk premiums are observed in countries where survey participants tend to be more short-term oriented. This finding is consistent with the explanation of the equity premium puzzle provided by myopic loss aversion.

Keywords: equity risk premium; time discounting; myopic loss aversion; cultural finance (search for similar items in EconPapers)
JEL-codes: D81 G02 G11 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.mfsociety.org/modules/modDashboard/uplo ... tuosfrj11lc2mj94.pdf (application/pdf)
http://www.mfsociety.org/modules/modDashboard/uplo ... ogleScholar/847.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mfj:journl:v:17:y:2013:i:3-4:p:149-163

Access Statistics for this article

Multinational Finance Journal is currently edited by Panayiotis C. Andreou

More articles in Multinational Finance Journal from Multinational Finance Journal Contact information at EDIRC.
Bibliographic data for series maintained by Theodossiou Panayiotis ().