Merger-Driven Listing Dynamics
Tuck School of Business at Dartmouth, Research Paper Series, No. 354758
78 Pages Posted: 3 Mar 2020 Last revised: 27 Jan 2022
Date Written: January 20, 2022
We measure the degree to which stock exchanges around the world attract and retain firms under public ownership by adjusting actual listing counts for targets of public acquirers. In the U.S., where these targets exceed the number of IPOs, our merger-adjustment eliminates both the dramatic (50%) post-1996 listing decline, and the relative international listing gap reported elsewhere. We also show that listing peaks followed by rapid declines are surprisingly common internationally. However, while the post-peak decline in the U.S. primarily reflects mergers between public firms, declines elsewhere to a greater extent reflect de facto stock-exchange exits.
Keywords: M&A, merger, public listing, listing peak, listing gap
JEL Classification: G15, G34
Suggested Citation: Suggested Citation