Assessing the economic impact of going public: evidence from firm-level data in the euro area

Listing equity in public markets can provide firms access to new capital and investment opportunities, benefiting the broader economy. But how does listing affect profitability and investment? To identify the "pure" effect of listing, we use propensity score matching and a staggered difference-in-difference approach. Using euro-area firm-level data, we compare public and private firms to explore listing's broader economic impact. We show that firms’ profitability increases after listing – indicative of wider economic benefits. Listed firms however seem to invest less long-term, indicating potential short-termism.