Journal of Finance and Economics
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Journal of Finance and Economics. 2020, 8(6), 244-249
DOI: 10.12691/jfe-8-6-2
Open AccessArticle

The Valuation Effects of a Nation’s External Wealth: Concepts and Measurements

Wangyin Hu1, , Guangtao Xia2 and Chi Zhang3

1School of Social Sciences, Tsinghua University, Beijing, P. R. China

2Institute of World Economics and Politics, Chinese Academy of Social Sciences, Beijing, P. R. China

3Economic Research and Analytics Division, New Development Bank, Shanghai, P. R. China

Pub. Date: November 08, 2020

Cite this paper:
Wangyin Hu, Guangtao Xia and Chi Zhang. The Valuation Effects of a Nation’s External Wealth: Concepts and Measurements. Journal of Finance and Economics. 2020; 8(6):244-249. doi: 10.12691/jfe-8-6-2


This paper discusses the concepts and measurements of valuation effects of a nation’s external wealth, which has become an important research focus in light of the deepening globalization. Further, it clarified the connections and heterogeneity between valuation effects and three related concepts, dark matter, excess return and financial adjustment, under a uniform theoretical model. It argues that although closely related, these concepts are different in definitions and measurements and the misuse of them in recent research has led to misunderstanding, ambiguity, and confusion. The detailed analysis in this paper will benefit the subsequent academic and policy research by solidifying the conceptual framework in the field of studies.

valuation effects dark matter excess return financial adjustment

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