Faculty Publications

Title

Trading costs and exchange delisting: The case of firms that voluntarily move from the American Stock Exchange to the Nasdaq

Document Type

Article

Journal/Book/Conference Title

Journal of Finance

Volume

52

Issue

5

First Page

2103

Last Page

2112

Abstract

We examine 47 stocks that voluntarily left the American Stock Exchange from 1992 through 1995 and listed on the Nasdaq. We find that both effective and quoted spreads increase by about 100 percent after listing on the Nasdaq. These spread changes are consistent across stocks. In contrast, excess returns are positive when firms announce a switch from The American Stock Exchange to the Nasdaq. We are unable to explain this apparent contradiction.

Original Publication Date

12-1-1997

DOI of published version

10.1111/j.1540-6261.1997.tb02753.x

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