TY - JOUR
T1 - Dissecting the listing gap
T2 - Mergers, private equity, or regulation?
AU - Lattanzio, Gabriele
AU - Megginson, William L.
AU - Sanati, Ali
N1 - Publisher Copyright:
© 2023 Elsevier B.V.
PY - 2023/9
Y1 - 2023/9
N2 - The abnormal decline in the number of U.S. public firms is often blamed on merger activity, private equity investments, and stock market regulations. We compare the effects of these channels in a unified framework. In the U.S., an extra 100 mergers is associated with 22.01 additional missing public firms, whereas an extra 100 PE deals is associated with 3.62 fewer missing public firms. Regulatory changes contribute to the decline of U.S. listings too. We also specify the types of deals that most strongly affect listings. Finally, we document that similar listing gaps emerge in other developed economies.
AB - The abnormal decline in the number of U.S. public firms is often blamed on merger activity, private equity investments, and stock market regulations. We compare the effects of these channels in a unified framework. In the U.S., an extra 100 mergers is associated with 22.01 additional missing public firms, whereas an extra 100 PE deals is associated with 3.62 fewer missing public firms. Regulatory changes contribute to the decline of U.S. listings too. We also specify the types of deals that most strongly affect listings. Finally, we document that similar listing gaps emerge in other developed economies.
KW - Compliance cost
KW - International financial markets
KW - Mergers and acquisitions
KW - Private equity
KW - Sarbanes–Oxley Act
KW - Securities regulation
KW - Stock listings
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U2 - 10.1016/j.finmar.2023.100836
DO - 10.1016/j.finmar.2023.100836
M3 - Article
AN - SCOPUS:85160053497
SN - 1386-4181
VL - 65
JO - Journal of Financial Markets
JF - Journal of Financial Markets
M1 - 100836
ER -