Listing Advantages Around the World
Using the firm-level data of 33 countries over 10 years (from 2008-2017), we find that the listed firms, on average, have lower marginal products of capital (measured by return on assets) than the unlisted firms in many countries. This implies that the listed firms face less financial constraints. Moreover, we investigate the institutional factors that exacerbate or mitigate the listing advantages across the countries. The listing advantages seem enlarged with better corporate governance and narrowed with stronger creditor's rights.
The views expressed in this paper are those of the authors and should not be attributed to any institutions that the authors have been affiliated with, nor of the National Bureau of Economic Research. This work is supported by the GraSPP Research Grant EGRM-20160 and the CARF at the University of Tokyo. This paper is also conducted as a part of the project “Study on Corporate Finance and Firm Dynamics” undertaken at the Research Institute of Economy, Trade and Industry (RIETI). We are grateful for helpful comments from Yishay Yafeh and participants of the NBER-TCER-CEPR (TRIO) Conference at the University of Tokyo.
Kenichi Ueda & Somnath Sharma, 2020. "Listing Advantages Around the World," Journal of the Japanese and International Economies, .