EconPapers    
Economics at your fingertips  
 

Why are firms listed in one country and private in other countries? The role of industry structure, banking sector and legal system

Jan Bartholdy and Dennis Olson ()

Journal of Corporate Finance, 2017, vol. 43, issue C, 480-499

Abstract: Why are some firms listed and other firms private? and why do some countries, therefore, have relatively more listed firms than other countries? In this paper, we argue that different industries have different propensities to list on stock exchanges making the industrial structure of the country a major determinant of the size of the stock exchange and the proportion of listed firms. The questions are analyzed using individual firm data on the likelihood of European firms being listed or private. In addition, we show that the likelihood of listing is greater in countries where banks are allowed to engage in investment banking. Finally, after controlling for industrial structure and financial sector characteristics, we show that firms are more likely to list under the Scandinavian legal system than in common law or civil law countries.

Keywords: Size of stock markets; Law and finance; Likelihood of being listed or private (search for similar items in EconPapers)
JEL-codes: G10 G20 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0929119917300858
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:43:y:2017:i:c:p:480-499

Access Statistics for this article

Journal of Corporate Finance is currently edited by A. Poulsen and J. Netter

More articles in Journal of Corporate Finance from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-09-29
Handle: RePEc:eee:corfin:v:43:y:2017:i:c:p:480-499