Listing Switches from NASDAQ to the NYSE or AMEX: Is New Stock Issuance a Motive?

Asli Ascioglu and Thomas McInish ()
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Asli Ascioglu: Assistant Professor of Finance, Bryant College, 1150 Douglas Pike, Smithfield, RI 02917-1284, USA

Chapter 10 in Advances in Quantitative Analysis of Finance and Accounting:New Series, 2005, pp 171-186 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractWe investigate whether firms that switch their listing from NASDAQ to either the NYSE or AMEX earn excess returns and increase shares outstanding. We find statistically positive cumulative excess returns around the switch day, but the cumulative excess returns turn negative two weeks after the switch and remain negative through the end of the study period at day +40. The number of sample firms that increase their shares outstanding at the time of the switch is not significantly larger than for a control group. We also find no evidence of significantly higher excess returns gained by firms that issue securities than for firms that do not issue securities. Hence, we conclude that our results do not support the view that firms increase their shares outstanding to take advantage of increased share value at the time of the switch.

Keywords: Derivatives Pricing; Path Analysis; Spillover; Effective Interest Rate; Higher Moments; NASDAQ; Covered Call Investing; Index Securities; Hedging; Asset Pricing; CFA Designation (search for similar items in EconPapers)
Date: 2005
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Chapter: Listing Switches from NASDAQ to the NYSE or AMEX: Is New Stock Issuance a Motive? (2004)
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