← Search

Journal of Financial Economics Vol. 110 No. 3 2013

The U.S. left behind? Financial globalization and the rise of IPOs outside the U.S.

Craig Doidge1; G. Andrew Karolyi2; René M. Stulz3,4,5,6

1 University of Toronto · 2 Cornell University · 3 European Corporate Governance Institute · 4 National Bureau of Economic Research · 5 Fisher College · 6 The Ohio State University

Abstract

From 1990 to 2011, the share of world IPO activity by non-U.S. firms increased because of financial globalization and because of a decrease in U.S. IPO activity. Financial globalization reduces the impact of national institutions on domestic IPO activity and enables more non-U.S. firms from countries with weak institutions to go public with a global IPO. U.S. IPO activity does not benefit from financial globalization. Compared to other countries, the rate of small-firm IPO activity in the U.S. is abnormally low in the 2000s. This abnormally low rate cannot be explained by the regulatory changes of the early 2000s.

DOI
10.1016/j.jfineco.2013.08.008
Volume
110
Issue
3
Pages
546-573
Language
en
Sources
bibtex:phds-export.bib openalex crossref

Cite