Stock Exchange Listing Fees, The Economic Analysis

With the development of economy and perfection of capital market, more and more companies choose direct financing. Listing fees are one kind of cost of listing companies to obtain a chance of listing and financing, and also are one kind of revenue of stock exchanges by supplying listing services to listing companies. It is very meaningful to study listing fees for listing companies and stock exchanges.This paper studies listing fees from seven sections as follows.The first section is mainly the literature reviews, and introduces studying methods, structures, and innovations.The second section studies charging standards of listing fees charged by main stock exchanges in the world, and finds listing fees are charged by stock exchanges as circulations of listing companies, and more large circulations, less listing fees of a unit circulation. Because of scale effect of services that stock exchanges offer, current charging standards of listing fees are rational. With the development of electronic technology and strengthening of competition, the monopoly position of stock exchanges has weakened, and the dependence of listing companies on services of stock exchanges has reduced gradually, so there is a trend that most stock exchanges reduce their listing fees to attract more and more listing companies.The third section, from the point of view of microeconomics, considers listing fees as a kind of special price of services that stock exchanges offer. Listing fee of unit circulation is decided by supply curve of stock exchanges and demand curve of listing corporations.The fourth section introduces effects of demutualization and going public of stock exchanges on listing fees. Demutualization makes stock exchanges convert from not-for-profit member-owned organizations to for-profit shareholder-owned corporations. Introduction of...