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Listing advantages around the world

Kenichi Ueda () and Somnath Sharma

Journal of the Japanese and International Economies, 2020, vol. 58, issue C

Abstract: Using the firm-level data of 33 countries over 10 years (2008–2017), we find that the listed firms have lower returns on assets than the similar unlisted firms, in most countries. The result is associated with a higher capital-labor ratio of listed firms, implying that the listed firms face less financial constraints. Moreover, we investigate the institutional factors that exacerbate or mitigate the listing advantages (i.e., ROA difference) across the countries. Compared to English origin law, countries with German and Scandinavian legal origins strongly narrow the listing advantages but the French legal origin shows mixed results. Overall, the listing advantages seem narrowed with stronger creditor’s rights but show unclear associations with the strength of corporate governance.

Keywords: Listing advantages; Financial friction; Corporate governance; Creditor’s rights; Financial development (search for similar items in EconPapers)
JEL-codes: E22 G32 (search for similar items in EconPapers)
Date: 2020
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Working Paper: Listing Advantages Around the World (2020) Downloads
Working Paper: Listing Advantages Around the World (2020) Downloads
Chapter: Listing Advantages around the World (2019)
Working Paper: Listing Advantages Around the World (2019) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jjieco:v:58:y:2020:i:c:s0889158320300265

DOI: 10.1016/j.jjie.2020.101089

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