Is the U.S. Capital Market Losing its Competitive Edge?

43 Pages Posted: 12 Nov 2007  

Luigi Zingales

University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Date Written: November 2007

Abstract

In this paper I analyze the competitiveness of the U.S. equity markets by studying the recent trend in the share of global IPOs they are able to attract. I find that the U.S. equity market share has dropped dramatically from 2000 to 2005. This drop cannot be explained by changes in the geographical or the sectoral composition of IPOs. The most likely cause is a combination of an improvement in the competitors (mostly European equity markets) and an increase in the compliance costs for publicly traded companies.

Keywords: Equity market, IPOs, competitiveness, compliance costs

JEL Classification: G15, G32

Suggested Citation

Zingales, Luigi, Is the U.S. Capital Market Losing its Competitive Edge? (November 2007). ECGI - Finance Working Paper No. 192/2007. Available at SSRN: https://ssrn.com/abstract=1028701 or http://dx.doi.org/10.2139/ssrn.1028701

Luigi Zingales (Contact Author)

University of Chicago - Booth School of Business ( email )

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National Bureau of Economic Research (NBER)

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Centre for Economic Policy Research (CEPR)

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