International Evidence on the Determinants of the Decision to List

This paper offers empirical insights into the determinants of listing activity using, annual data sampled across 38 exchanges. Listing activity in developed countries stock markets is influenced by a range of variables which capture stock market and business conditions. The single most important factor in explaining the current level of listing activity, however, is the past level of listing activity. For emerging stock markets, none of the variables tested possessed any real explanatory power. Evidence is also found to suggest that high listing activity is accompanied by an increase in seasoned equity issues.