How Exchange Listing Affects Corporate Governance

On April 3, 2018, the Swedish online music company Spotify Technology disrupted the traditional initial public offering (IPO) marketplace when it directly listed its shares on the New York Stock Exchange (NYSE) under the ticker symbol “SPOT.” With a valuation of $26.5 billion at the end of the first day of trading, it was one of the largest technology listings for the NYSE since Facebook. [1] While seemingly just another tech venture IPO, this offering represented a watershed event.

The common motivations for firms listing on public stock exchanges such as the NASDAQ or the NYSE are to raise large … Read more