Rejected stock exchange applicants

• 成果类型: Article
• 署名作者: Fjesme, Sturla L.; Galpin, Neal E.; Moore, Lyndon
• 署名单位: Oslo Metropolitan University (OsloMet); UiT The Arctic University of Tromso; Monash University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2020.08.005
• 发表日期: 2021
• 页码: 502-521
• 关键词: Financial intermediaries; securities markets; Initial public offering

摘要

We examine listing applications by firms to the London Stock Exchange between 1891 and 1911. The exchange rejected 82 (13.1%) of the 628 applicants to its main board. Accepted applicants were twice as likely to pay dividends (and to pay twice as much) and had longer firm lives than rejected applicants. Rejected applicants were more likely to file for liquidation than successful applicants. These results remain even after we control for the primary benefits of the listing itself: liquidity and future capital inflows. In this era, the London Stock Exchange could screen applicants for listing. (C) 2020 Elsevier B.V. All rights reserved.