In this paper we study the changes in corporate valuations induced by the adoption of the euro as the common currency … in Europe. We use corporate-evel data from ten countries that adopted the euro, the three EU countries that did not start … using the euro, as well as Norway and Switzerland. We show that the introduction of the euro has increased Tobin's Q …

of Economic and Monetary Union (EMU) in Europe. We use corporate-level data from ten countries that adopted the euro, the … three EU countries that did not join EMU, as well as Norway and Switzerland. We show that the introduction of the euro has … supports the view that the introduction of the euro has lowered firms' cost of capital by eliminating currency risks among the …