Toward more democratic corporate financing

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Authors:
Guy LeBlanc
managing partner, PwC Montréal
Russell Goodman
partner, PwC Montréal
Michel Brunet
Chair, FMC
Pierre Lortie
Senior Business Advisor, FMC

Convinced that Québec needs to provide offer the best possible conditions if it is to prosper in the face of global competition, PwC and FMC recently conducted a joint investigation of why Quebec companies are so reluctant to use public capital markets. The trend is unmistakeable: in 2010, 74 Canadian corporations were listed on the TSX and of that number, only three were from Québec. On the TSX Growth Index, only 11 of the 206 new listings of Canadian corporations were from Québec.

Why is this happening? We questioned some sixty private and public corporation executives, private placement fund managers and securities brokers, so that we could determine the reasons why Quebec entrepreneurs behave so differently with regard to public capital markets as a source of the funds necessary for growth and innovation. Our objective is to provide private and public decision-makers with an informed diagnosis of the factors accounting for the current situation and what measures, if any, would promote faster growth by Quebec corporations.

The results of the study were released on March 30. You can download the full report of the study now.