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

See all articles by B. Espen Eckbo

B. Espen Eckbo

Tuck School of Business at Dartmouth; European Corporate Governance Institute (ECGI)

Markus Lithell

Tuck School of Business at Dartmouth

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

Eckbo, B. Espen and Lithell, Markus, Merger-Driven Listing Dynamics (October 2, 2023). 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, Available at SSRN: https://ssrn.com/abstract=3547581 or http://dx.doi.org/10.2139/ssrn.3547581

B. Espen Eckbo (Contact Author)

Tuck School of Business at Dartmouth ( email )

Hanover, NH 03755
United States
603-646-3953 (Phone)
603-646-3805 (Fax)

HOME PAGE: http://tuck.dartmouth.edu/faculty/faculty-directory/b-espen-eckbo

European Corporate Governance Institute (ECGI)

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Markus Lithell

Tuck School of Business at Dartmouth ( email )

100 Tuck Hall
Hanover, NH 03755
United States

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