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Pension policy and the IPO market

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  • Tsai, Hui-Ju
  • Chiang, Yao-Min

Abstract

We show that a country's pension policy can explain its initial public offering (IPO) activities. Countries with policies relying more on public pensions have fewer IPOs, and the issuances are more likely to be of small firms and in the nonmain markets. Countries depending less on public pensions are more likely to attract foreign firms to list in their markets, whereas firms from countries with higher public pension replacement rates are not more likely to leave their home countries to list abroad. The relationship between pension policies and IPOs in Europe, however, is not as significant as in other countries.

Suggested Citation

  • Tsai, Hui-Ju & Chiang, Yao-Min, 2020. "Pension policy and the IPO market," Finance Research Letters, Elsevier, vol. 34(C).
    • Handle: RePEc:eee:finlet:v:34:y:2020:i:c:s1544612319302193
    DOI: 10.1016/j.frl.2019.08.005
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    Keywords

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    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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