The World Federation of Exchanges (WFE) published research showing that mergers and acquisitions (M&A) account for most companies leaving public markets, while higher secondary market liquidity is associated with lower delisting rates. Changes in net listings are much more closely tied to initial public offering (IPO) activity than to delistings. The study covers 60 exchanges in 55 jurisdictions from 2010 to 2024.
Companies exiting through M&A tend to be larger and financially stronger, while involuntary delistings are more common among smaller, financially weaker companies. M&A exits account for most changes in overall delisting activity, whereas voluntary delistings have remained relatively limited and stable. Involuntary exits are more prevalent where exchange liquidity is weaker. In advanced economies, M&A accounts for a larger share of delistings and exchange trading conditions are more closely linked to delisting rates. Voluntary and involuntary exits represent a larger share in emerging market and developing economies.
Declines in the number of listed companies often reflect weaker listing conditions, particularly weaker IPO activity, rather than delisting waves alone. Stronger market returns and gross domestic product growth are positively associated with net listings. In the release, WFE Chief Executive Officer Nandini Sukumar emphasized that efforts to strengthen public markets should address conditions attracting new listings, rather than focus only on reducing delistings.