Oxford Review of Economic Policy volume 36, issue 2, P275-290 2020 DOI: 10.1093/oxrep/graa003 View full text
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René M Stulz

Abstract: Abstract The last 20 years or so have seen a sharp decline in public equity. I present a framework that explains the forces that cause the listing propensity of firms to change over time. This framework highlights the benefits and costs of a public listing compared to the benefits and costs of financing with private equity. With this framework, the decline in public equity is explained by the increased supply of funds for private equity and changes in the nature of firms. The increase in the imp…

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