The Evolution of the Listing Propensity of Large European Firms

This chapter delves into the evolution of large public and private firms in Europe over a 30-year period, from 1992 to 2022. It highlights a notable trend where both public and private firms experienced growth in numbers and sales until 2012, followed by a decline in firm count. However, private firms have continued to grow in total sales, indicating a consolidation trend where fewer but larger firms dominate. The analysis reveals significant variations across countries and industries, with capital-intensive sectors like Manufacturing and Oil & Gas maintaining a high share of public firms, while sectors like Retail and Wholesale show a shift towards private ownership. The chapter also investigates the factors influencing a firm's listing status, such as size, age, and ownership structure. The findings suggest that larger firms are more likely to be publicly traded, while firms with concentrated ownership are less likely to list. The chapter concludes by discussing the economic and policy implications of these trends, emphasizing the need for targeted reforms to enhance the attractiveness of public equity markets while allowing firms to benefit from the flexibility of private ownership.