Is the U.S. Capital Market Losing its Competitive Edge?

43 Pages Posted: 12 Nov 2007

See all articles by Luigi Zingales

Luigi Zingales

University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI)

Date Written: November 2007

Abstract

In this paper I analyze the competitiveness of the U.S. equity markets by studying the recent trend in the share of global IPOs they are able to attract. I find that the U.S. equity market share has dropped dramatically from 2000 to 2005. This drop cannot be explained by changes in the geographical or the sectoral composition of IPOs. The most likely cause is a combination of an improvement in the competitors (mostly European equity markets) and an increase in the compliance costs for publicly traded companies.

Keywords: Equity market, IPOs, competitiveness, compliance costs

JEL Classification: G15, G32

Suggested Citation

Zingales, Luigi, Is the U.S. Capital Market Losing its Competitive Edge? (November 2007). ECGI - Finance Working Paper No. 192/2007, Available at SSRN: https://ssrn.com/abstract=1028701 or http://dx.doi.org/10.2139/ssrn.1028701

Luigi Zingales (Contact Author)

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-3196 (Phone)
773-834-2081 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
1,503
Abstract Views
6,887
Rank
23,281
PlumX Metrics