The Impact of a Stock Listing on the Determinants of Firm Performance

KU Leuven Working Paper No. AFI 0608

34 Pages Posted: 29 Nov 2006

See all articles by Frederiek Schoubben

Frederiek Schoubben

KU Leuven; KU Leuven

Cynthia Van Hulle

KU Leuven - Department of Applied Economics

Date Written: 2006

Abstract

Research on the question of what makes firms perform well has shown that product market competition, financial pressure and ownership or ownership identity are important performance drivers. Recently the issue of whether or not their impact is influenced by environmental or contextual characteristics has received increasing attention. In this paper we test, on a sample of Belgian firms, whether performance drivers behave differently in a non-quoted environment as compared to a quoted one. Our main result is that the impact of competition, financial pressure and family control does indeed depend upon whether the firm is quoted or not. Overall, for nonquoted companies the performance drivers do not enhance performance and in mostcases are even detrimental. For quoted companies however the results are just the opposite. We find that this difference in driver functioning explains the better performance of quoted firms vis-à-vis their private peers.

Keywords: Research, Impact, Determinants, Firms, Product, Market, Competition, Ownership, Performance, Characteristics, Belgian firms, Control, Companies, Firm performance

Suggested Citation

Schoubben, Frederiek and Van Hulle, Cynthia, The Impact of a Stock Listing on the Determinants of Firm Performance (2006). KU Leuven Working Paper No. AFI 0608, Available at SSRN: https://ssrn.com/abstract=947482 or http://dx.doi.org/10.2139/ssrn.947482

Frederiek Schoubben (Contact Author)

KU Leuven ( email )

Naamsestraat 69
B-3000 Leuven, 3000
Belgium

KU Leuven ( email )

FEB
Korte Nieuwstraat 33
Antwerp, 2000
Belgium

Cynthia Van Hulle

KU Leuven - Department of Applied Economics ( email )

Naamsestraat 69
B-3000 Leuven
BELGIUM
32-16-326734 (Phone)
32-16-326732 (Fax)

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