Mandatory shares listing effect on further capital raising in the Croatian capital market from 2002–2010

摘要

This article investigates regulatory impact on decisions of companies to go public and raise capital in the Croatian capital market. It questions the regulatory decision of mandatory shares listing, brought in 2002, whose aim was to encourage companies of certain size of shareholders’ equity to enter the capital market. The effect ofmandatory shares listing on further capital raising in public by companies has been analysed by means of secondary data and survey-based answers of their chief financial officers. Financing policies of voluntarily and mandatorily listed firms were compared for statistical differences. The research results have shown that mandatory listing of shares in the capital market has not spurred public companies to issue securities and raise funds in the capital market thereafter.