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Antitrust deregulation and the U.S. listing gap

Author

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  • Loveland, Robert
  • Okoeguale, Kevin

Abstract

Following recent empirical evidence that industry concentration in the U.S. in recent decades is substantially explained by the weakened enforcement of antitrust laws, we examine the effects of lax antitrust enforcement on the U.S. listing gap. We construct a counterfactual scenario that simulates listing counts as if antitrust deregulation had not occurred. We find that the magnitude of the listing gap from 2002 on is considerably attenuated. We estimate that antitrust deregulation explains an average of 27 % of the annual missing listings from 2003 to 2013, or 1,265 missing listing firms per year.

Suggested Citation

  • Loveland, Robert & Okoeguale, Kevin, 2025. "Antitrust deregulation and the U.S. listing gap," Finance Research Letters, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325006853
    DOI: 10.1016/j.frl.2025.107425
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    References listed on IDEAS

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    1. Ovtchinnikov, Alexei V., 2013. "Merger waves following industry deregulation," Journal of Corporate Finance, Elsevier, vol. 21(C), pages 51-76.
    2. Philippon, Thomas & Gutierrez, German, 2018. "How EU Markets Became More Competitive Than US Markets: A Study of Institutional Drift," CEPR Discussion Papers 12983, C.E.P.R. Discussion Papers.
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    4. Doidge, Craig & Karolyi, G. Andrew & Stulz, René M., 2017. "The U.S. listing gap," Journal of Financial Economics, Elsevier, vol. 123(3), pages 464-487.
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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
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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