Literature review on the balance between publicly-listed and privately-held companies

THIS IS A CONTRACT AWARD NOTICE The Financial Reporting Council (FRC) regulates auditors, accountants and actuaries and sets the UK's Corporate Governance and Stewardship Codes. As the Competent Authority for audit in the UK, we set auditing and ethical standards and monitor and enforce audit quality.

The purpose of the FRC is to serve the public interest and support UK economic growth by upholding high standards of corporate governance, corporate reporting, audit and actuarial work. The FRC was seeking a Literature review on the balance between publicly-listed and privately-held companies.

The number of UK publicly-listed companies (PLCs) has fallen over the past decade. At the same time more companies are choosing to remain unlisted and financing their growth through private capital .

The UK has become Europe's largest private-equity hub, and its leading venture capital market , both of which are funding privately held (non-listed) companies (PHCs). As part of its ongoing market monitoring activities, the FRC was seeking research services to deliver a review of the leading expert literature to understand the scale, trajectory and international context of these changes.

As well as potential implications which might arise. This will include peer-reviewed academic research, as well as studies carried out with suitable rigour by professional bodies, industry organisations, and think tanks (grey literature).

The review will draw on literature from a range of relevant disciplines including, but not limited to: law, economics, political economy, business, public administration. It should be written to inform non-academic readers about the following: • The leading analyses of evidence on theses changes, including: o The scale, trajectory, and other relevant characteristics. o Views on what might happen next. o The international context from relevant jurisdiction(s). o The causes/drivers of the change and whether they are evolving over time, including evidence on how and why commercial entities choose between different potential sources of funding. • Whether the literature provides any information relevant to understanding any potential impact on: o Our regulation, in particular the effect of shifts in sources of capital when combined with the existing policy landscape and legislative definitions which drive audit and corporate reporting requirements. o Any additional, relevant policy implications for us to consider.

The review should be focused on the UK but may also draw on literature that brings insights from other jurisdictions, where clearly relevant. The markets in-scope for this research will include: • London Stock Exchange (LSE) Main Market • LSE Alternative Investment Market (AIM) • Relevant markets of the Aquis exchange • UK private-equity, venture capital, and private-credit markets We may also include other UK debt and equity markets.

This will be discussed with the successful research contractor once appointed. The suggested approach for the Literature Review was: Methodology • Search strategy: databases (e.g. JSTOR, SSRN, Web of Science, Scopus), policy portals, news archives. • Literature: o Inclusion/exclusion criteria should include, but not be limited to: relevance to UK context, credibility/quality/reliability, publication date, citations (or equivalent). o Biases and perspectives to be identified, where present, but not by themselves to be critria for exclusion. • Analytical approach: thematic coding, comparative case analyses, cross-discipliniary comparison (gaps and/or contradictions), synthesis of findings.