Dissecting the listing gap: Mergers, private equity, or regulation?

Gabriele Lattanzio, William L. Megginson and Ali Sanati

Journal of Financial Markets, 2023, vol. 65, issue C

Abstract: The abnormal decline in the number of U.S. public firms is often blamed on merger activity, private equity investments, and stock market regulations. We compare the effects of these channels in a unified framework. In the U.S., an extra 100 mergers is associated with 22.01 additional missing public firms, whereas an extra 100 PE deals is associated with 3.62 fewer missing public firms. Regulatory changes contribute to the decline of U.S. listings too. We also specify the types of deals that most strongly affect listings. Finally, we document that similar listing gaps emerge in other developed economies.

Keywords: Stock listings; Mergers and acquisitions; Private equity; Securities regulation; Sarbanes–Oxley Act; Compliance cost; International financial markets (search for similar items in EconPapers)
JEL-codes: G15 G18 G24 G34 G38 K22 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finmar:v:65:y:2023:i:c:s1386418123000344

DOI: 10.1016/j.finmar.2023.100836

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