Main Article Content
Abstract
Purpose: This study analyzes the strategic impact of stock exchange selection on companies going public and its influence on long-term growth. It focuses on how exchange choice affects access to capital, corporate reputation, governance practices, and financial performance.
Research Method: This study adopts a qualitative approach, utilizing a systematic literature review (SLR) methodology. The research synthesizes existing literature from peer-reviewed articles, reports, and studies, focusing on the factors influencing stock exchange selection and its subsequent effects on company growth and performance.
Results and Discussion: The findings reveal that exchanges with high liquidity and strong reputations, such as NYSE and NASDAQ, provide companies with greater access to capital and a broader investor base. The study also demonstrates that listing on reputable exchanges enhances corporate governance, improves market visibility, and supports long-term growth through strategic alignment with sector-specific growth and diversification. Regulatory frameworks and governance standards are critical in fostering investor trust and market stability.
Implications: The research has significant practical implications for companies considering IPOs. It underscores the importance of selecting exchanges that align with growth strategies, regulatory standards, and long-term goals. Companies should prioritize exchanges with high liquidity and robust governance structures to attract institutional investors and expand their international presence. The study also provides managers with insights into making informed decisions about exchange selection, based on long-term growth and strategic alignment.
Keywords
Article Details

This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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- Aldredge, M., & DuBois, S. (2023). Back to the Basics: Financial Statement Disclosures & Reporting Requirements. International Journal of Business and Management, 17(8). https://econpapers.repec.org/RePEc:ibn:ijbmjn:v:17:y:2023:i:8:p:1
- Armour, J., Mayer, C., & Polo, A. (2017). Regulatory Sanctions and Reputational Damage in Financial Markets. Journal of Financial and Quantitative Analysis, 52(4), 1429–1448. https://doi.org/10.1017/S0022109017000461
- Carbone, E., Campopiano, G., Cirillo, A., & Mussolino, D. (2024). Why and How Do Family Firms Go Public? A Socioemotional Wealth Perspective of IPO. Family Business Review, 08944865241273380. https://doi.org/10.1177/08944865241273380
- Cheffins, B. R., & Reddy, B. V. (2023). Will listing rule reform deliver strong public markets for the UK? Wiley Online Library. https://doi.org/10.1111/1468-2230.12758
- De la Torre, A., & Schmukler, S. L. (2007). Emerging capital markets and globalization: the Latin American experience. Stanford University Press.
- DiPiazza Jr, S. A., & Eccles, R. G. (2002). Building public trust: The future of corporate reporting. John Wiley & Sons.
- Draho, J. (2004). The IPO decision: Why and how companies go public. Edward Elgar Publishing.
- Dwianto, A., Puspitasari, D., A’yun, A. Q., Sulistyawati, A. I., & Pugara, A. (2024). Sustainability Environmental Performance Future Investment for Company Value. Journal of Ecohumanism, 3(2), 233–250.
- Efunniyi, C. P., Abhulimen, A. O., Obiki-Osafiele, A. N., Osundare, O. S., Agu, E. E., & Adeniran, I. A. (2024). Strengthening corporate governance and financial compliance: Enhancing accountability and transparency. Finance & Accounting Research Journal, 6(8), 1597–1616. https://doi.org/10.51594/farj.v6i8.1509
- Fombrun, C. J., & Van Riel, C. B. M. (2004). Fame & fortune: How successful companies build winning reputations. FT press.
- Ghaemi-Zadeh, N., & Eghbali-Zarch, M. (2024). Evaluation of business strategies based on the financial performance of the corporation and investors’ behavior using D-CRITIC and fuzzy MULTI-MOORA techniques: A real case study. Expert Systems with Applications, 247, 123183. https://doi.org/https://doi.org/10.1016/j.eswa.2024.123183
- Ghalke, A., Kumar, S., & Rao, S. V. D. N. (2022). SME financing through public equity: review of the Indian SME exchanges. Indian Growth and Development Review, 15(1), 85–97. https://doi.org/10.1108/IGDR-10-2021-0138
- Gounopoulos, D., Loukopoulos, G., Loukopoulos, P., & Wood, G. (2024). Corporate political activities and the SEC’s oversight role in the IPO process. Journal of Management Studies, 61(2), 375–412. https://doi.org/10.1111/joms.12892
- Gupta, A. K., Govindarajan, V., & Wang, H. (2008). The quest for global dominance: Transforming global presence into global competitive advantage. John Wiley & Sons.
- Hossain, M. S. (2021). Merger & Acquisitions (M&As) as an important strategic vehicle in business: Thematic areas, research avenues & possible suggestions. Journal of Economics and Business, 116, 106004. https://doi.org/https://doi.org/10.1016/j.jeconbus.2021.106004
- Hursti, J., & Maula, M. V. J. (2007). Acquiring financial resources from foreign equity capital markets: An examination of factors influencing foreign initial public offerings. Journal of Business Venturing, 22(6), 833–851. https://doi.org/https://doi.org/10.1016/j.jbusvent.2006.09.001
- Janicka, M., Pieloch-Babiarz, A., & Sajnóg, A. (2020). Does short-termism influence the market value of companies? Evidence from EU countries. Journal of Risk and Financial Management, 13(11), 272. https://doi.org/10.3390/jrfm13110272
- Jing, D., Imeni, M., Edalatpanah, S. A., Alburaikan, A., & Khalifa, H. A. E.-W. (2023). Optimal selection of stock portfolios using multi-criteria decision-making methods. Mathematics, 11(2), 415. https://doi.org/10.3390/math11020415
- Karim, M. R., Reza, M. M. U., & Shetu, S. A. (2024). COVID-19-related accounting disclosures in the financial statements: evidence from an emerging economy. Accounting Research Journal, 37(1), 98–114. https://doi.org/10.1108/ARJ-09-2023-0251
- Karolyi, G. A. (1998). Why do companies list shares abroad?: A survey of the evidence and its managerial implications. Financial Markets, Institutions & Instruments, 7(1), 1–60. https://doi.org/10.1111/1468-0416.00018
- Lefebvre, V. (2023). The growth process of IPO firms. Journal of Business Venturing Insights, 19, e00377. https://doi.org/https://doi.org/10.1016/j.jbvi.2023.e00377
- Lewis, J. D. (2002). Partnerships for profit: Structuring and managing strategic alliances. Simon and Schuster.
- Li, L., & Naughton, T. (2007). Going public with good governance: Evidence from China. Corporate Governance: An International Review, 15(6), 1190–1202. https://doi.org/10.1111/j.1467-8683.2007.00640.x
- Li, W. (2024). Analysis of Financial Market Efficiency. International Journal of Global Economics and Management, 2(2), 244–253. https://doi.org/10.62051/ijgem.v2n2.31
- Megaravalli, A. V. (2023). Initial public offering: a critical review of literature. Qualitative Research in Financial Markets, 15(2), 385–411. https://doi.org/10.1108/QRFM-11-2021-0190
- Min, G., & Jin, K.-Y. (2021). Relational Enforcement of Stock Exchange Rules. https://doi.org/10.2139/ssrn.3761982
- Mohamed Riyath, M. I., & Indunil Dayaratne, D. A. (2024). Why do companies go public in Sri Lanka? A mixed-method approach. Qualitative Research in Financial Markets, ahead-of-print(ahead-of-print). https://doi.org/10.1108/QRFM-06-2023-0141
- Nurcahya, T. W., & Utiyati, S. (2016). Pengaruh Cross Listing Terhadap Pertumbuhan Perusahaan Manufaktur Di BEI. Jurnal Ilmu Dan Riset Manajemen (JIRM), 5(8). http://jurnalmahasiswa.stiesia.ac.id/index.php/jirm/article/download/949/961.
- Ong, T. S., Zhou, J., Teh, B. H., & Di Vaio, A. (2024). Equity ownership concentration’s impact on corporate internal control: the moderating effects of female directors and board compensation. Environment, Development and Sustainability, 26(5), 12309–12337. https://doi.org/10.1007/s10668-023-03795-9
- Panda, B., & Leepsa, N. M. (2017). Agency theory: Review of theory and evidence on problems and perspectives. Indian Journal of Corporate Governance, 10(1), 74–95. https://doi.org/10.1177/0974686217701467
- Rezaee, Z. (2007). Corporate governance post-Sarbanes-Oxley: Regulations, requirements, and integrated processes. John Wiley & Sons.
- Rezaee, Z. (2011). Financial Services Firms: Governance, Regulations, Valuations, Mergers, and Acquisitions. John Wiley & Sons.
- Rosana, D. M. (2024). Financial Structure Annual Volatility, Stock Liquidity, and Ordinary Equity Security Returns of Public Limited Companies in Kenya. JKUAT-COHRED. http://localhost/xmlui/handle/123456789/6371
- Salam, M. A., & Jahed, M. A. (2023). CSR orientation for competitive advantage in business-to-business markets of emerging economies: the mediating role of trust and corporate reputation. Journal of Business & Industrial Marketing, 38(11), 2277–2293. https://doi.org/10.1108/JBIM-12-2021-0591
- Siegel, J. J. (2021). Stocks for the long run: The definitive guide to financial market returns & long-term investment strategies. McGraw-Hill Education.
- Stevenson, R., McMahon, S. R., Ciuchta, M. P., & Letwin, C. (2024). More than capital? Transaction costs, trade-offs, and value for small businesses in novel funding transactions. Journal of Small Business Management, 62(4), 2152–2179. https://doi.org/10.1080/00472778.2023.2204501
- Suharto, F. T., & MM, S. H. (2014). Mengungkap rahasia forex. Elex Media Komputindo.
- Supsermpol, P., Huynh, V. N., Thajchayapong, S., & Chiadamrong, N. (2023). Predicting financial performance for listed companies in Thailand during the transition period: A class-based approach using logistic regression and random forest algorithm. Journal of Open Innovation: Technology, Market, and Complexity, 9(3), 100130. https://doi.org/https://doi.org/10.1016/j.joitmc.2023.100130
- Teweles, R. J., & Bradley, E. S. (1998). The stock market (Vol. 64). John Wiley & Sons.
- Verma, R. K., & Bansal, R. (2021). Impact of macroeconomic variables on the performance of stock exchange: a systematic review. International Journal of Emerging Markets, 16(7), 1291–1329. https://doi.org/10.1108/ijoem-11-2019-0993
- Ye, Y., Hong, H., Wu, D., & Sun, T. (2024). Categorical listing criteria, co-investment system and growth manipulation: empirical evidence based on the implementation of the registration system of STAR market. China Journal of Accounting Studies, 12(1), 71–105. https://doi.org/10.1080/21697213.2024.2336088
- Zahid, R. M. A., Khan, M. K., & Kaleem, M. S. (2024). Skilled managers and capital financing decisions: navigating Chinese firms through financing constraints and growth opportunities. Kybernetes, 53(11), 4381–4396. https://doi.org/10.1108/K-02-2023-0268
References
Alao, A. I., Adebiyi, O. O., & Olaniyi, O. O. (2024). The Interconnectedness of Earnings Management, Corporate Governance Failures, and Global Economic Stability: A Critical Examination of the Impact of Earnings Manipulation on Financial Crises and Investor Trust in Global Markets. Asian Journal of Economics, Business and Accounting, 24(11), 47–73. https://doi.org/10.9734/ajeba/2024/v24i111542
Aldredge, M., & DuBois, S. (2023). Back to the Basics: Financial Statement Disclosures & Reporting Requirements. International Journal of Business and Management, 17(8). https://econpapers.repec.org/RePEc:ibn:ijbmjn:v:17:y:2023:i:8:p:1
Armour, J., Mayer, C., & Polo, A. (2017). Regulatory Sanctions and Reputational Damage in Financial Markets. Journal of Financial and Quantitative Analysis, 52(4), 1429–1448. https://doi.org/10.1017/S0022109017000461
Carbone, E., Campopiano, G., Cirillo, A., & Mussolino, D. (2024). Why and How Do Family Firms Go Public? A Socioemotional Wealth Perspective of IPO. Family Business Review, 08944865241273380. https://doi.org/10.1177/08944865241273380
Cheffins, B. R., & Reddy, B. V. (2023). Will listing rule reform deliver strong public markets for the UK? Wiley Online Library. https://doi.org/10.1111/1468-2230.12758
De la Torre, A., & Schmukler, S. L. (2007). Emerging capital markets and globalization: the Latin American experience. Stanford University Press.
DiPiazza Jr, S. A., & Eccles, R. G. (2002). Building public trust: The future of corporate reporting. John Wiley & Sons.
Draho, J. (2004). The IPO decision: Why and how companies go public. Edward Elgar Publishing.
Dwianto, A., Puspitasari, D., A’yun, A. Q., Sulistyawati, A. I., & Pugara, A. (2024). Sustainability Environmental Performance Future Investment for Company Value. Journal of Ecohumanism, 3(2), 233–250.
Efunniyi, C. P., Abhulimen, A. O., Obiki-Osafiele, A. N., Osundare, O. S., Agu, E. E., & Adeniran, I. A. (2024). Strengthening corporate governance and financial compliance: Enhancing accountability and transparency. Finance & Accounting Research Journal, 6(8), 1597–1616. https://doi.org/10.51594/farj.v6i8.1509
Fombrun, C. J., & Van Riel, C. B. M. (2004). Fame & fortune: How successful companies build winning reputations. FT press.
Ghaemi-Zadeh, N., & Eghbali-Zarch, M. (2024). Evaluation of business strategies based on the financial performance of the corporation and investors’ behavior using D-CRITIC and fuzzy MULTI-MOORA techniques: A real case study. Expert Systems with Applications, 247, 123183. https://doi.org/https://doi.org/10.1016/j.eswa.2024.123183
Ghalke, A., Kumar, S., & Rao, S. V. D. N. (2022). SME financing through public equity: review of the Indian SME exchanges. Indian Growth and Development Review, 15(1), 85–97. https://doi.org/10.1108/IGDR-10-2021-0138
Gounopoulos, D., Loukopoulos, G., Loukopoulos, P., & Wood, G. (2024). Corporate political activities and the SEC’s oversight role in the IPO process. Journal of Management Studies, 61(2), 375–412. https://doi.org/10.1111/joms.12892
Gupta, A. K., Govindarajan, V., & Wang, H. (2008). The quest for global dominance: Transforming global presence into global competitive advantage. John Wiley & Sons.
Hossain, M. S. (2021). Merger & Acquisitions (M&As) as an important strategic vehicle in business: Thematic areas, research avenues & possible suggestions. Journal of Economics and Business, 116, 106004. https://doi.org/https://doi.org/10.1016/j.jeconbus.2021.106004
Hursti, J., & Maula, M. V. J. (2007). Acquiring financial resources from foreign equity capital markets: An examination of factors influencing foreign initial public offerings. Journal of Business Venturing, 22(6), 833–851. https://doi.org/https://doi.org/10.1016/j.jbusvent.2006.09.001
Janicka, M., Pieloch-Babiarz, A., & Sajnóg, A. (2020). Does short-termism influence the market value of companies? Evidence from EU countries. Journal of Risk and Financial Management, 13(11), 272. https://doi.org/10.3390/jrfm13110272
Jing, D., Imeni, M., Edalatpanah, S. A., Alburaikan, A., & Khalifa, H. A. E.-W. (2023). Optimal selection of stock portfolios using multi-criteria decision-making methods. Mathematics, 11(2), 415. https://doi.org/10.3390/math11020415
Karim, M. R., Reza, M. M. U., & Shetu, S. A. (2024). COVID-19-related accounting disclosures in the financial statements: evidence from an emerging economy. Accounting Research Journal, 37(1), 98–114. https://doi.org/10.1108/ARJ-09-2023-0251
Karolyi, G. A. (1998). Why do companies list shares abroad?: A survey of the evidence and its managerial implications. Financial Markets, Institutions & Instruments, 7(1), 1–60. https://doi.org/10.1111/1468-0416.00018
Lefebvre, V. (2023). The growth process of IPO firms. Journal of Business Venturing Insights, 19, e00377. https://doi.org/https://doi.org/10.1016/j.jbvi.2023.e00377
Lewis, J. D. (2002). Partnerships for profit: Structuring and managing strategic alliances. Simon and Schuster.
Li, L., & Naughton, T. (2007). Going public with good governance: Evidence from China. Corporate Governance: An International Review, 15(6), 1190–1202. https://doi.org/10.1111/j.1467-8683.2007.00640.x
Li, W. (2024). Analysis of Financial Market Efficiency. International Journal of Global Economics and Management, 2(2), 244–253. https://doi.org/10.62051/ijgem.v2n2.31
Megaravalli, A. V. (2023). Initial public offering: a critical review of literature. Qualitative Research in Financial Markets, 15(2), 385–411. https://doi.org/10.1108/QRFM-11-2021-0190
Min, G., & Jin, K.-Y. (2021). Relational Enforcement of Stock Exchange Rules. https://doi.org/10.2139/ssrn.3761982
Mohamed Riyath, M. I., & Indunil Dayaratne, D. A. (2024). Why do companies go public in Sri Lanka? A mixed-method approach. Qualitative Research in Financial Markets, ahead-of-print(ahead-of-print). https://doi.org/10.1108/QRFM-06-2023-0141
Nurcahya, T. W., & Utiyati, S. (2016). Pengaruh Cross Listing Terhadap Pertumbuhan Perusahaan Manufaktur Di BEI. Jurnal Ilmu Dan Riset Manajemen (JIRM), 5(8). http://jurnalmahasiswa.stiesia.ac.id/index.php/jirm/article/download/949/961.
Ong, T. S., Zhou, J., Teh, B. H., & Di Vaio, A. (2024). Equity ownership concentration’s impact on corporate internal control: the moderating effects of female directors and board compensation. Environment, Development and Sustainability, 26(5), 12309–12337. https://doi.org/10.1007/s10668-023-03795-9
Panda, B., & Leepsa, N. M. (2017). Agency theory: Review of theory and evidence on problems and perspectives. Indian Journal of Corporate Governance, 10(1), 74–95. https://doi.org/10.1177/0974686217701467
Rezaee, Z. (2007). Corporate governance post-Sarbanes-Oxley: Regulations, requirements, and integrated processes. John Wiley & Sons.
Rezaee, Z. (2011). Financial Services Firms: Governance, Regulations, Valuations, Mergers, and Acquisitions. John Wiley & Sons.
Rosana, D. M. (2024). Financial Structure Annual Volatility, Stock Liquidity, and Ordinary Equity Security Returns of Public Limited Companies in Kenya. JKUAT-COHRED. http://localhost/xmlui/handle/123456789/6371
Salam, M. A., & Jahed, M. A. (2023). CSR orientation for competitive advantage in business-to-business markets of emerging economies: the mediating role of trust and corporate reputation. Journal of Business & Industrial Marketing, 38(11), 2277–2293. https://doi.org/10.1108/JBIM-12-2021-0591
Siegel, J. J. (2021). Stocks for the long run: The definitive guide to financial market returns & long-term investment strategies. McGraw-Hill Education.
Stevenson, R., McMahon, S. R., Ciuchta, M. P., & Letwin, C. (2024). More than capital? Transaction costs, trade-offs, and value for small businesses in novel funding transactions. Journal of Small Business Management, 62(4), 2152–2179. https://doi.org/10.1080/00472778.2023.2204501
Suharto, F. T., & MM, S. H. (2014). Mengungkap rahasia forex. Elex Media Komputindo.
Supsermpol, P., Huynh, V. N., Thajchayapong, S., & Chiadamrong, N. (2023). Predicting financial performance for listed companies in Thailand during the transition period: A class-based approach using logistic regression and random forest algorithm. Journal of Open Innovation: Technology, Market, and Complexity, 9(3), 100130. https://doi.org/https://doi.org/10.1016/j.joitmc.2023.100130
Teweles, R. J., & Bradley, E. S. (1998). The stock market (Vol. 64). John Wiley & Sons.
Verma, R. K., & Bansal, R. (2021). Impact of macroeconomic variables on the performance of stock exchange: a systematic review. International Journal of Emerging Markets, 16(7), 1291–1329. https://doi.org/10.1108/ijoem-11-2019-0993
Ye, Y., Hong, H., Wu, D., & Sun, T. (2024). Categorical listing criteria, co-investment system and growth manipulation: empirical evidence based on the implementation of the registration system of STAR market. China Journal of Accounting Studies, 12(1), 71–105. https://doi.org/10.1080/21697213.2024.2336088
Zahid, R. M. A., Khan, M. K., & Kaleem, M. S. (2024). Skilled managers and capital financing decisions: navigating Chinese firms through financing constraints and growth opportunities. Kybernetes, 53(11), 4381–4396. https://doi.org/10.1108/K-02-2023-0268