Stock returns and liquidity after listing switch on the Warsaw Stock Exchange

Podedworna-Tarnowska Dorota () and Kaszyński Daniel ()
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Podedworna-Tarnowska Dorota: Institute of Value Management, Axiology and Value Measurement Unit, SGH Warsaw School of Economics, al. Niepodległości 162, 02-554 Warszawa, Poland
Kaszyński Daniel: Institute of Econometrics, Decision Analysis and Support Unit, SGH Warsaw School of Economics, al. Niepodległości 162, 02-554 Warszawa, Poland

Economics and Business Review, 2022, vol. 8, issue 4, 111-135

Abstract: The aim of the article is to evaluate the market reaction to the change of listing venue of companies moving from the alternative market to the regulated market of the Warsaw Stock Exchange. To do so, we investigated 71 switches, and their effect on market returns and liquidity. While the transfer itself creates a negative market reaction, the announcement of the transfer of a company and the institutional confirmation by the supervision of the company’s readiness for this transfer resulting from the approval of the prospectus creates positive market reactions. As a result of the transfer of companies there is an improvement in the liquidity of the shares. The empirical findings of the study could assist managers and investors in understanding the impact of stock exchange migration on returns and the liquidity of shares in the shorter and longer term.

Keywords: alternative market; main market; listing change; stock liquidity (search for similar items in EconPapers)
JEL-codes: G10 G14 G18 G30 G32 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:ecobur:v:8:y:2022:i:4:p:111-135:n:2

DOI: 10.18559/ebr.2022.4.6

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