Stock exchange governance and stock liquidity: International evidence

Selma Boussetta
Additional contact information
Selma Boussetta: BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: This paper empirically investigates the effects of exchange demutualization on listed firms around the world. In particular, it examines how stock exchange demutualization affects stock liquidity and how the effect varies by exchange operating performance and country development level. We find that stock liquidity improves following exchange demutualization. Specifically, the effect is more evident among exchanges with stronger operating performance which tend to diversify their revenue, and which belong to developed countries. Furthermore, we identify an increase in the market share of exchanges in developed markets in response to exchange ownership conversion, which is mostly driven by domestic order flow. Overall, this paper highlights the importance of the exchange ownership structure strategy in enhancing financial market quality in international markets.

Keywords: Stock exchange; Conversion to for-profit firm strategy; Liquidity; Demutualization; Cross-country (search for similar items in EconPapers)
Date: 2022-12-01
References: Add references at CitEc
Citations:

Published in Journal of Multinational Financial Management, 2022, 66, ⟨10.1016/j.mulfin.2022.100759⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03930276

DOI: 10.1016/j.mulfin.2022.100759

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().