Harvard Business School
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Institutional Affiliation: Harvard Business School
NBER Working Papers and Publications
|December 2018||The Creation and Evolution of Entrepreneurial Public Markets|
with Shai Bernstein, Josh Lerner: w25414
This paper explores the creation and evolution of new stock exchanges around the world geared towards entrepreneurial companies, known as second-tier exchanges. Using hand-collected novel data, we document the proliferation of these new stock exchanges that were created in a large number of countries, attracted a significant volume of global IPOs, were introduced fairly cyclically, and had lower listing requirements when compared to first-tier stock exchanges. We find that increases in demand for entrepreneurial capital—as proxied for by patenting, IPOs, and stock market valuations—led to a higher likelihood of the introduction of second-tier exchanges. We find no evidence that new second-tier exchanges diverted the existing flow of IPOs from established stock exchanges. Shareholder protec...
Published: Shai Bernstein & Abhishek Dev & Josh Lerner, 2019. "The Creation and Evolution of Entrepreneurial Public Markets," Journal of Financial Economics, .