As part of the series of the „Finance Research Seminar“, VGSF welcomes Espen Eckbo from Dartmouth College, Tuck School of Business to present his research paper.
Merger-driven listing dynamics
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.
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