The curious case of changes in trading dynamics: When firms switch from NYSE to NASDAQ

Viet Dang, David Michayluk () and Thu Phuong Pham ()

Journal of Financial Markets, 2018, vol. 41, issue C, 17-35

Abstract: Voluntarily switching trading location from the New York Stock Exchange to the NASDAQ is a new phenomenon, with 53 companies making the switch since 2000. We examine the stated reasons for the move and investigate the consistency with the subsequent market dynamics, including effects on liquidity, trading activity, and visibility. We find the move to the NASDAQ increases trading costs, improves visibility, attracts more liquidity providers in the long term, explaining the subsequent increase in trading volume and supporting many of the management statements justifying the move. Our findings suggest multi-dimensional aspects may be important considerations in moves between exchanges.

Keywords: Trading costs; Volume; Exchange listing; NYSE; NASDAQ (search for similar items in EconPapers)
JEL-codes: G10 G15 G18 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finmar:v:41:y:2018:i:c:p:17-35

DOI: 10.1016/j.finmar.2018.07.001

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