Is the U.S. Capital Market Losing its Competitive Edge?
University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR); University of Chicago - Polsky Center for Entrepreneurship; European Corporate Governance Institute (ECGI)
ECGI - Finance Working Paper No. 192/2007
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.
Number of Pages in PDF File: 43
Keywords: Equity market, IPOs, competitiveness, compliance costs
JEL Classification: G15, G32
Date posted: November 12, 2007