Have exchange-listed firms become less important for the economy?

Frederik P. Schlingemann and René M. Stulz

Journal of Financial Economics, 2022, vol. 143, issue 2, 927-958

Abstract: Publicly traded firms contribute less to total nonfarm employment and GDP now than in the 1970s. Major reasons for this development are the decline of manufacturing, the shift towards more production abroad in manufacturing, and the growth of the service economy as firms providing services are less likely to be listed on exchanges. A firm's stock market capitalization is much less instructive about its employment now than earlier. Market capitalizations have not become systematically less informative about firms’ contribution to GDP. Listed stock market superstars account for less employment than they did in the 1970s.

Keywords: Stock market; Value added; Listing; Market capitalization; Employment (search for similar items in EconPapers)
JEL-codes: E44 G23 G32 K22 L16 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0304405X21003548
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:jfinec:v:143:y:2022:i:2:p:927-958

DOI: 10.1016/j.jfineco.2021.08.009

Access Statistics for this article

Journal of Financial Economics is currently edited by G. William Schwert

More articles in Journal of Financial Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().