Firms’ Listings: What is New? Italy Versus the Main European Stock Exchanges

32 Pages Posted: 28 May 2020

See all articles by Paolo Finaldi Russo

Paolo Finaldi Russo

Bank of Italy

Fabio Parlapiano

Bank of Italy; Sapienza, University of Rome; TSBE - Tasmanian School of Business

Daniele Pianeselli

Bank of Italy

Ilaria Supino

Bank of Italy

Date Written: April 27, 2020

Abstract

Over the last decade and a half non-financial corporations’ (NFCs) listings have displayed a heterogeneous pattern across European countries. The number of listed NFCs has increased in Italy and Spain, while it has declined in Germany, France and the United Kingdom. In Italy, the increase in the number of listed firms has been driven by SMEs’ listings, leaving the stock market small by international standards. We break down the size gap of the Italian equity market (with respect to its European peers) into the share of listed companies and their relative size. We show that the lower share of listed NFCs in Italy accounts for the gap with France and the UK, while the smaller size of Italian public firms has a crucial bearing on the differences with Germany and Spain. Counterfactual exercises provide evidence that there is limited room to bridge these gaps, as the structure of the Italian economy leans towards small enterprises. Policy measures aimed at fostering SMEs’ propensity to go public may be more effective in promoting the further development of the Italian stock exchange.

Keywords: capital markets, stock market, IPOs, SMEs listings

JEL Classification: G1, G3

Suggested Citation

Finaldi Russo, Paolo and Parlapiano, Fabio and Pianeselli, Daniele and Supino, Ilaria, Firms’ Listings: What is New? Italy Versus the Main European Stock Exchanges (April 27, 2020). Bank of Italy Occasional Paper No. 555, Available at SSRN: https://ssrn.com/abstract=3612754 or http://dx.doi.org/10.2139/ssrn.3612754

Paolo Finaldi Russo

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

Fabio Parlapiano

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

HOME PAGE: http://www.bancaditalia.it/

Sapienza, University of Rome ( email )

Via del Castro Laurenziano, 9
Rome, Rome 00161
Italy

HOME PAGE: http://https://web.uniroma1.it/dip_management/

TSBE - Tasmanian School of Business ( email )

Private Bag 84
Hobart, TAS 7001
Australia

HOME PAGE: http://www.utas.edu.au/business-and-economics/home

Daniele Pianeselli (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Ilaria Supino

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

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