Where have all the IPOs gone? Trade liberalization and the changing nature of U.S. public corporations

47 Pages Posted: 10 Dec 2018 Last revised: 30 Mar 2021

See all articles by Thomas P. Griffin

Thomas P. Griffin

Villanova University - Department of Finance & Real Estate

Date Written: March 30, 2021

Abstract

I show that a tariff policy change that increased trade with China led to a decline in U.S. public listing rates and elevated industry concentration. Consistent with heterogeneous firm models of trade, the shock impeded the entry and performance of small domestic manufacturers but did not adversely impact large multinationals. In addition, stock price reactions to the policy change and threat of reversal imply that trade liberalization creates or destroys value depending on firm size. These findings suggest that recent trends in the U.S. public equity market are driven, in part, by fundamental changes in the global competitive landscape.

Keywords: IPOs, Stock market listing, Industry concentration, Trade liberalization

JEL Classification: F65, G10, G30, G38

Suggested Citation

Griffin, Thomas, Where have all the IPOs gone? Trade liberalization and the changing nature of U.S. public corporations (March 30, 2021). Available at SSRN: https://ssrn.com/abstract=3287328 or http://dx.doi.org/10.2139/ssrn.3287328

Thomas Griffin (Contact Author)

Villanova University - Department of Finance & Real Estate ( email )

United States

HOME PAGE: http://www.thomaspgriffin.com

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