Entrepreneurial Stock Brokering and Switching Costs

G. Geoffrey Booth, Orkunt M. Dalgic, Juha-Pekka Kallunki and Petri Sahlström
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G. Geoffrey Booth: Eli Broad Graduate School of Management, Michigan State University
Orkunt M. Dalgic: State University of New York at New Paltz
Juha-Pekka Kallunki: University of Oulu, Finland
Petri Sahlström: University of Oulu, Finland

Journal of Entrepreneurial Finance, 2007, vol. 12, issue 1, 1-8

Abstract: Stock brokers are entrepreneurs who incur switching costs when the change brokerage houses. We use Helsinki Stock Exchange data to investigate these costs by examining whether investors are loyal to their brokers when brokers move. We find that investors who have extant relationships with the new house are more likely to attract the investors from the old houses, and savvy (knowledgeable) investors are more likely to stay with their broker.

Keywords: Stock Brokers; Switching Costs; Relationships; Helsinki Stock Exchange (search for similar items in EconPapers)
JEL-codes: G14 G15 (search for similar items in EconPapers)
Date: 2007
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