Stock Markets and Corporate Performance: A Comparison of Quoted and Unquoted Firms
AbstractThis paper examines the influence of stock markets on corporate performance. It compares large private and publicly listed companies in the UK. It finds that, controlling for size and industry, quoted firms invest more and grow more rapidly than unquoted firms. They earn higher profits and pay out a higher proportion of their earnings as dividends. They raise more equity finance but use this to purchase equity in other companies. In contrast, private companies are concentrated in low technology industries. There is therefore no evidence of adverse effects of stock markets on corporate performance. The proposition that firms are involuntarily driven to seek listings, however, cannot be rejected.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 571.
Date of creation: Aug 1991
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- Marco Pagano & Fabio Panetta & Luigi Zingales, .
"Why Do Companies Go Public? An Empirical Analysis,"
CRSP working papers
330, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
- Marco Pagano & Fabio Panetta & Luigi Zingales, 1995. "Why Do Companies Go Public? An Empirical Analysis," NBER Working Papers 5367, National Bureau of Economic Research, Inc.
- Pagano, Marco & Panetta, Fabio & Zingales, Luigi, 1996. "Why Do Companies Go Public? An Empirical Analysis," CEPR Discussion Papers 1332, C.E.P.R. Discussion Papers.
- Ignacio Hernando & Javier Valles, 1994. "Algunas diferencias en la productividad de las empresas manufactureras españolas," Investigaciones Economicas, Fundación SEPI, vol. 18(1), pages 117-141, January.
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