The Global Financial Crisis and Stock Market Migrations: An Analysis of Family and Non-Family Firms in Germany

80 Pages Posted: 3 Dec 2018 Last revised: 11 Aug 2021

See all articles by Wolfgang Bessler

Wolfgang Bessler

University of Hamburg

Johannes Beyenbach

Handelshochschule Leipzig (HHL) - Center for Corporate Governance

Marc Steffen Rapp

University of Marburg - School of Business & Economics; University of Marburg - Marburg Centre for Institutional Economics (MACIE)

Marco Vendrasco

University of Hamburg

Date Written: January 26, 2021

Abstract

In most European countries, the number of exchange-listed firms has begun declining subsequent to the global financial crisis in 2008/2009. In the U.S., these numbers had already started to decrease one decade earlier. We investigate how the global financial crisis encouraged family and non-family firms in Germany to transfer from the highest to a lower stock market segment. Using logit and firm-fixed effects regressions, we provide several explanations why we observe a higher propensity of family firms relative to non-family firms to migrate to a lower market segment subsequent to the financial crisis. Explanations are lower investments during the financial crisis, decreasing growth opportunities and operating performance as well as lower stock market quality. Consequently, many family firms reassessed their listing benefits and costs after the financial crisis as well as their initial market segment decision. In contrast, the transfer reasons for non-family firms are often a lower performance and financial difficulties.

Keywords: Securities market organization, corporate governance, regulatory changes, going dark, delisting, family firms

JEL Classification: G14, G18, G30, G32, G39

Suggested Citation

Bessler, Wolfgang and Beyenbach, Johannes and Rapp, Marc Steffen and Vendrasco, Marco, The Global Financial Crisis and Stock Market Migrations: An Analysis of Family and Non-Family Firms in Germany (January 26, 2021). International Review of Financial Analysis, Vol. 74, 2021, Available at SSRN: https://ssrn.com/abstract=3288654 or http://dx.doi.org/10.2139/ssrn.3288654

Wolfgang Bessler (Contact Author)

University of Hamburg ( email )

Allende-Platz 1
Hamburg, 20146
Germany

Johannes Beyenbach

Handelshochschule Leipzig (HHL) - Center for Corporate Governance ( email )

Jahnallee 59
Leipzig, 04109
Germany

Marc Steffen Rapp

University of Marburg - School of Business & Economics ( email )

Am Plan 2
Marburg, D-35037
Germany

University of Marburg - Marburg Centre for Institutional Economics (MACIE) ( email )

Am Plan
Marburg, 35032
Germany

Marco Vendrasco

University of Hamburg ( email )

Allende-Platz 1
Hamburg, 20146
Germany

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