The global financial crisis and stock market migrations: An analysis of family and non-family firms in Germany

Wolfgang Bessler, Johannes Beyenbach, Marc Steffen Rapp and Marco Vendrasco

International Review of Financial Analysis, 2021, vol. 74, issue C

Abstract: In most European countries, the number of exchange-listed firms has begun declining subsequent to the global financial crisis in 2008/2009. In the U.S., these numbers had already started to decrease one decade earlier. We investigate how the global financial crisis encouraged family and non-family firms in Germany to transfer from the highest to a lower stock market segment. Using logit and firm-fixed effects regressions, we provide several explanations why we observe a higher propensity of family firms relative to non-family firms to migrate to a lower market segment subsequent to the financial crisis. Explanations are lower investments during the financial crisis, decreasing growth opportunities and operating performance as well as lower stock market quality. Consequently, many family firms reassessed their listing benefits and costs after the financial crisis as well as their initial market segment decision. In contrast, the transfer reasons for non-family firms are often a lower performance and financial difficulties.

Keywords: Securities market organization; Corporate governance; Regulatory changes; Going dark; Delisting; Family firms (search for similar items in EconPapers)
JEL-codes: G14 G18 G30 G32 G39 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:74:y:2021:i:c:s1057521921000351

DOI: 10.1016/j.irfa.2021.101692

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