Pension policy and the IPO market
Journal
Finance Research Letters
Journal Volume
34
Date Issued
2020
Author(s)
Tsai, H.-J.
Abstract
We show that a country's pension policy can explain its initial public offering (IPO) activities. Countries with policies relying more on public pensions have fewer IPOs, and the issuances are more likely to be of small firms and in the nonmain markets. Countries depending less on public pensions are more likely to attract foreign firms to list in their markets, whereas firms from countries with higher public pension replacement rates are not more likely to leave their home countries to list abroad. The relationship between pension policies and IPOs in Europe, however, is not as significant as in other countries.
SDGs
Type
journal article