The Merger-Adjusted US Listing Gap

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

67 Pages Posted: 3 Mar 2020 Last revised: 2 Jul 2020

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: June 30, 2020

Abstract

We adjust the US stock-exchange listing count for all significant transactions that move corporate assets into or out of the stock market - in particular mergers and acquisitions. In contrast to the actual listing count, the US merger-adjusted count hardly peaks over 1980--2017 and does not exhibit a gap vis-a-vis merger-adjusted listings in other countries. Moreover, we show that while actual listing peaks followed by sharp declines are common internationally, the post-peak decline reflects a reallocation of assets between public firms in the US, while declines elsewhere largely tunnel assets out of public markets.

Keywords: Stock exchange listing, IPOs, new lists, delists, listing gap, merger-adjusted gap, mergers, acquisitions

JEL Classification: G15, G34

Suggested Citation

Eckbo, B. Espen and Lithell, Markus, The Merger-Adjusted US Listing Gap (June 30, 2020). Tuck School of Business at Dartmouth, Research Paper Series, No. 354758, 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://www.tuck.dartmouth.edu/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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