Does Stock Listing Affect Value Creation and Profitability? Evidence from European Listed and Unlisted Companies
| Autor: | Carmelo Intrisano, Anna Paola Micheli, Anna Maria Calce |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
050208 finance
Value creation listed companies business.industry value creation 05 social sciences Comparability stock listing value creation performance cost of equity listed companies unlisted companies Accounting Time horizon unlisted companies stock listing cost of equity Return on equity 0502 economics and business Profitability index 050207 economics business performance Stock (geology) |
| Zdroj: | International Journal of Economics and Finance. 12:130 |
| ISSN: | 1916-9728 1916-971X |
| Popis: | In this paper we have studied the issue of whether the stock listing decision impacts firms’ performance and value. In detail, we compared listed and unlisted companies located in countries belonging to the Stoxx Europe 600 in a 3-year time horizon (2015-2017). Companies are grouped in sector in order to ensure a greater comparability of data. As variable representative of performance we used the return on equity while for value creation we chosen the ROE-ke differential. Using the statistical t-test we ascertain the comparability of values. Results of our study demonstrated that unlisted companies have greater profitability and generate higher value than listed peers. In particular, given the significance level at 1% resulting from the t-test for the difference between the means, profitability and value created are higher for unlisted companies compared to the listed especially for the Thecnology, Telecommunication and Industrials sectors. |
| Databáze: | OpenAIRE |
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