The Going Public Decision and the Structure of Equity Markets

Alfonso Astudillo, Matias Braun and Pablo Castaneda ()

MPRA Paper from University Library of Munich, Germany

Abstract: The industries in which listed firms are concentrated in less developed equity markets are not random, nor entirely explained by the underlying composition of production. Listed firms and market capitalization are disproportionately concentrated in industries with low beta (measured with their beta with the market portfolio in the U.S.). We document a strong positive relationship between the industry-weighted country beta and the degree of market development across countries. Recent IPO activity confirms the result since new listings have higher betas than the average firm already in the market.

Keywords: Risk Sharing; Development of Financial Markets; Composition of Equity Markets (search for similar items in EconPapers)
JEL-codes: G11 G15 L1 O12 (search for similar items in EconPapers)
Date: 2011-06-30
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Citations: View citations in EconPapers (2)

Published in journal of international money and finance 30.7(2011): pp. 1451-1470

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Related works:
Journal Article: The going public decision and the structure of equity markets (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:38640

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