TitleDoes it matter where assets are held and income is derived? Further evidence of differential value relevance from Quebec
Publication TypeJournal Articles
Year of Publication2012
AuthorsGraham, R, Morrill, C, Morrill, J
JournalJournal of International Accounting, Auditing and Taxation
Date Published2012

In this paper, we build on recent studies documenting an economic discount on firms located in the Canadian province of Quebec that seems to be associated with the political risk generated by the Quebec separatist movement (e. g., Graham, Morrill and Morrill, 2005). We use information on firms’ economic activity in the province of Quebec as collected and published by the Quebec business newspaper Les Affaires for the period 1990-2008. We find that variables proxying for extent of operations in Quebec are associated with market-to-book multiples on book value and earnings.