Bo Becker, Victoria Ivashina, 28 March 2019

In the past 30 years, defaults on corporate bonds in the US have been substantially above the historical average. Using firm-level data, this column shows that the increase in credit risk can be largely attributed to an increase in the rate at which new and fast-growing firms displace incumbents, a phenomenon defined as ‘disruption’. Incumbent revenue growth suffers when there are many IPOs in an industry, and newly issued bonds in high-disruption industries have higher yields.

Norges Bank Investment Management, 18 July 2016

Growth in the number of publicly quoted companies is a key driver of economic development, so the apparent decline in the number of company listings, at least in developed markets, is naturally worrying for investors, exchanges, and regulators alike. This column provides a framework to address this decline, and proposes possible remedies that could be taken to encourage more listings. The listings ecosystem must establish a new equilibrium to address the evolving conflicts of interest between founders, early investors, underwriters, and future shareholders.

Thierry Foucault, Laurent Frésard, 05 March 2016

Economists continue to debate whether stock markets influence the real economy. This column takes a look at initial public offerings (IPOs) and finds that firms can increase the precision of the signals they get from the stock market by imitating each other. This effect has important implications for the structure of industries, innovation strategies, the diversity of product offerings for consumers, and the scope for diversification for investors.


CEPR Policy Research