The U.S. Listing Gap
Charles A. Dice Center Working Paper No. 2015-07
55 Pages Posted: 13 May 2015 Last revised: 14 Jun 2016
Date Written: June 1, 2016
Relative to other countries, the U.S. now has abnormally few listed firms. This “U.S. listing gap” is consistent with a decrease in the net benefit of a listing for U.S. firms. Since the listing peak in 1996, the propensity to be listed is lower for all firm size categories and industries, the new list rate is low, and the delist rate is high. The high delist rate accounts for 46% of the listing gap and the low new list rate for 54%. The high delist rate is explained by an unusually high rate of acquisitions of publicly listed firms.
Keywords: Stock market listing; New list; Delist
JEL Classification: G10; G15; G34
Suggested Citation: Suggested Citation