The Evolution of the Listing Propensity of Large European Firms

This chapter examines the long-term evolution of large public and private firms in Europe and investigates whether their listing propensity has changed over time. Using data covering a 30-year timespan (from 1992 to 2022), we document a historical rise in the number of both public and private firms, followed by a decline in the last decade. While public firms mirror this overall trend in both numbers and aggregate sales, private firms exhibit sustained growth in sales despite their declining number. The share of total sales attributed to private firms has steadily increased. Additionally, we highlight significant variation across industries and countries. Our findings point to a structural shift favoring private ownership among large firms, with potential implications for capital allocation and market competition in Europe.