Merger-Driven Listing Dynamics
Tuck School of Business at Dartmouth, Research Paper Series, No. 354758
European Corporate Governance Institute – Finance Working Paper No. 752/2021
Journal of Financial and Quantitative Analysis, Forthcoming
93 Pages Posted: 3 Mar 2020 Last revised: 17 Oct 2023
Date Written: October 2, 2023
Abstract
Stock-market effectiveness in attracting and retaining firms under public ownership depends not only on stand-alone firms' net listing benefits but also on gains from merging with a public acquirer. Using a novel merger-adjusted listing count, we show that the dramatic (≈50%) post-1996 U.S. listing decline – often attributed to declining listing benefits – is reversed as the 'missing' firms de facto continue existing inside their public acquirers. Our merger adjustment also eliminates the U.S. listing gap, pointing instead to a distinct U.S. listing advantage: providing access to a well-functioning market for complex merger transactions.
Keywords: M&A, merger, public listing, listing peak, listing gap
JEL Classification: G15, G34
Suggested Citation: Suggested Citation