Citation

Discussion Paper Details

Please find the details for DP571 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Stock Markets and Corporate Performance: A Comparison of Quoted and Unquoted Firms

Author(s): Ian Alexander and Colin Mayer

Publication Date: August 1991

Keyword(s): Corporate Finance and Investment, Short Termism and Stock Markets

Programme Area(s): Applied Macroeconomics

Abstract: This 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.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=571

Bibliographic Reference

Alexander, I and Mayer, C. 1991. 'Stock Markets and Corporate Performance: A Comparison of Quoted and Unquoted Firms'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=571