Merger-Driven Listing Dynamics

Merger-Driven Listing Dynamics

B. Espen Eckbo, Markus Lithell

Series number :

Serial Number: 
752/2021

Date posted :

April 19 2021

Last revised :

October 15 2023
SSRN Share

Keywords

  • M&A • 
  • merger • 
  • public listing • 
  • listing peak • 
  • listing gap

Stock-market effectiveness in attracting and retaining firms under public ownership depends not only on stand-alone firms' net listing benefits but also on gains from merging with a public acquirer. Using a novel merger-adjusted listing count, we show that the dramatic (≈50%) post-1996 U.S.

listing decline – often attributed to declining listing benefits – is reversed as the 'missing' firms de facto continue existing inside their public acquirers. Our merger adjustment also eliminates the U.S. listing gap, pointing instead to a distinct U.S. listing advantage: providing access to a well-functioning market for complex merger transactions.

Published in

Published in: 
Description: 
Journal of Financial and Quantitative Analysis, forthcoming

Authors

Real name:
Markus Lithell