Where Have All the IPOs Gone? Trade Liberalization and the Changing Nature of U.S. Public Corporations

Journal of Financial and Quantitative Analysis, Forthcoming

67 Pages Posted: 10 Dec 2018 Last revised: 16 Nov 2023

See all articles by Thomas P. Griffin

Thomas P. Griffin

Villanova University - Department of Finance & Real Estate

Date Written: November 15, 2023

Abstract

I show that a tariff policy change that increased trade with China led to a decline in U.S. public listing rates and elevated industry concentration. Consistent with heterogeneous firm models of trade, the shock impeded the entry and performance of small domestic manufacturers but did not adversely impact large multinationals. In addition, stock price reactions to the tariff policy change and threat of reversal imply that trade liberalization creates or destroys value depending on firm size. These findings suggest that recent trends in the U.S. public equity market are driven, in part, by fundamental changes in the global competitive landscape.

Keywords: IPOs, Stock market listing, Industry concentration, Trade liberalization

JEL Classification: F65, G10, G30, G38

Suggested Citation

Griffin, Thomas, Where Have All the IPOs Gone? Trade Liberalization and the Changing Nature of U.S. Public Corporations (November 15, 2023). Journal of Financial and Quantitative Analysis, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3287328 or http://dx.doi.org/10.2139/ssrn.3287328

Thomas Griffin (Contact Author)

Villanova University - Department of Finance & Real Estate ( email )

United States

HOME PAGE: http://www.thomaspgriffin.com

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
223
Abstract Views
1,796
Rank
248,431
PlumX Metrics