Assessing the economic impact of going public: evidence from firm-level data in the euro area

Benjamin Böninghausen, Johanne Evrard, Zakaria Gati, Sofia Gori, Claudia Lambert and Wagner Eduardo Schuster

Economics Letters, 2025, vol. 256, issue C

Abstract: Listing equity in public markets can provide firms access to new capital and investment opportunities, benefiting the broader economy. But how does listing affect profitability and investment? To identify the "pure" effect of listing, we use propensity score matching and a staggered difference-in-difference approach. Using euro-area firm-level data, we compare public and private firms to explore listing's broader economic impact. We show that firms’ profitability increases after listing – indicative of wider economic benefits. Listed firms however seem to invest less long-term, indicating potential short-termism.

Keywords: Corporate finance; Equity markets; Listing; Savings and investments union (search for similar items in EconPapers)
JEL-codes: G10 G30 G32 L10 L21 L25 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:256:y:2025:i:c:s0165176525004161

DOI: 10.1016/j.econlet.2025.112579

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