Merger-Driven Listing Dynamics

Tuck School of Business at Dartmouth, Research Paper Series, No. 354758

European Corporate Governance Institute – Finance Working Paper No. 752/2021

75 Pages Posted: 3 Mar 2020 Last revised: 22 Apr 2021

See all articles by B. Espen Eckbo

B. Espen Eckbo

Tuck School of Business at Dartmouth; European Corporate Governance Institute (ECGI)

Markus Lithell

Norwegian School of Economics (NHH) - Department of Finance

Date Written: April 18, 2021

Abstract

To accurately gauge the flow of firms into and retained by stock exchanges, we add targets of public acquirers to the listing count. For the U.S., this merger-adjustment rivals IPOs in its impact on listing dynamics, and it eliminates the dramatic post-1996 listing decline and subsequent international listing gap. We also show that listing peaks are surprisingly common internationally, but with a different impact of our merger-adjustment. While the U.S. post-peak decline reflects mergers between public firms, declines elsewhere tend to move assets out of public markets -pointing to a relative U.S. listing advantage.

Keywords: M&A, merger, public listing, listing peak, listing gap

JEL Classification: G15, G34

Suggested Citation

Eckbo, B. Espen and Lithell, Markus, Merger-Driven Listing Dynamics (April 18, 2021). Tuck School of Business at Dartmouth, Research Paper Series, No. 354758, European Corporate Governance Institute – Finance Working Paper No. 752/2021, Available at SSRN: https://ssrn.com/abstract=3547581 or http://dx.doi.org/10.2139/ssrn.3547581

B. Espen Eckbo (Contact Author)

Tuck School of Business at Dartmouth ( email )

Hanover, NH 03755
United States
603-646-3953 (Phone)
603-646-3805 (Fax)

HOME PAGE: http://tuck.dartmouth.edu/faculty/faculty-directory/b-espen-eckbo

European Corporate Governance Institute (ECGI)

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Markus Lithell

Norwegian School of Economics (NHH) - Department of Finance ( email )

Helleveien 30
N-5045 Bergen
Norway

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