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The U.S. left behind? Financial globalization and the rise of IPOs outside the U.S

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  • Doidge, Craig
  • Karolyi, G. Andrew
  • Stulz, René M.

Abstract

From 1990 to 2011, the share of world IPO activity by non-U.S. firms increased because of financial globalization and because of a decrease in U.S. IPO activity. Financial globalization reduces the impact of national institutions on domestic IPO activity and enables more non-U.S. firms from countries with weak institutions to go public with a global IPO. U.S. IPO activity does not benefit from financial globalization. Compared to other countries, the rate of small-firm IPO activity in the U.S. is abnormally low in the 2000s. This abnormally low rate cannot be explained by the regulatory changes of the early 2000s.

Suggested Citation

  • Doidge, Craig & Karolyi, G. Andrew & Stulz, René M., 2013. "The U.S. left behind? Financial globalization and the rise of IPOs outside the U.S," Journal of Financial Economics, Elsevier, vol. 110(3), pages 546-573.
    • Handle: RePEc:eee:jfinec:v:110:y:2013:i:3:p:546-573
    DOI: 10.1016/j.jfineco.2013.08.008
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    More about this item

    Keywords

    Financial globalization; IPO; Corporate governance;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • F3 - International Economics - - International Finance

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