“Policymakers and all Canadians should be concerned by the alarming decline in the number of publicly traded companies in Canada, which risks economic stagnation and lower living standards ahead,” Finlayson said.
To address the problem, the study recommends a mix of capital-markets and broader economic reforms.
On the market side, the authors call for simplifying Canada’s regulatory regime for listed companies and scaling back corporate disclosure requirements.
They argue that today’s framework has become increasingly complicated and costly, especially for smaller issuers that might otherwise consider going public.
More broadly, the report urges governments to pursue policies aimed at improving Canada’s performance on business investment, productivity growth and new business formation—conditions the authors see as essential to rebuilding a vibrant pipeline of companies that can eventually list on public markets.