Why We Shouldn’t Worry About the Declining Number of Public Companies
AUGUST 27, 2018
stock exchanges has declined by almost 50% from its peak in 1996, despite dramatic increase in aggregate market capitalization. firms gravitate towards digital strategies, firms have less need for elaborate finance, marketing, production, distribution, accounting, and human resource departments. In sum, digital strategies and rapid technological obsolescence increases the mortality rates among existing public firms, but does not correspondingly increase the demand for IPOs.