It is hard to judge how much of a disadvantage this has been, but if it drives New Zealand corporates towards foreign financial markets and eventually towards foreign relocation, then that could be activity lost to New Zealand. BIS Review 108/2006  11  New Zealanders’ unwillingness to provide equity capital has been an incentive for increased direct foreign ownership.
In many cases this has been desirable, even inevitable, for expanding companies. One can see a natural progression whereby some New Zealand companies gradually outgrow the technical and market limitations of this country, and as they expand into bigger markets, take on more of the ownership attributes of international firms. But if that happens “prematurely”, there is an opportunity benefit foregone for New Zealand.