The U.S. listing gap

Relative to other countries, the U.S. now has abnormally few listed firms. This “U.S. listing gap” is consistent with a decrease in the net benefit of a listing for U.S. firms. Since the listing peak in 1996, the propensity to be listed is lower for all firm size categories and industries, the new l...

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Bibliographic Details
Published in:Journal of financial economics 2017-03, Vol.123 (3), p.464-487
Main Authors: Doidge, Craig, Karolyi, G. Andrew, Stulz, René M.
Format: Article
Language:English
Subjects:
Delist
GDP
Gross Domestic Product
New list
Stock market delistings
Stock market listing
Studies
United States
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Summary:Relative to other countries, the U.S. now has abnormally few listed firms. This “U.S. listing gap” is consistent with a decrease in the net benefit of a listing for U.S. firms. Since the listing peak in 1996, the propensity to be listed is lower for all firm size categories and industries, the new list rate is low, and the delist rate is high. The high delist rate accounts for 46% of the listing gap and the low new list rate for 54%. The high delist rate is explained by an unusually high rate of acquisitions of publicly listed firms.
ISSN:0304-405X
1879-2774
DOI:10.1016/j.jfineco.2016.12.002