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Long‐Term Effects Following Voluntary Move From American Stock Exchange to Nasdaq

Kam C. Chan (Lubin School of Business, Pace University, 861 Bedford Road, Pleasantville, NY 10570)
Annie Wong (Department of Finance, Western Connecticut State University, 181 White Street, Danbury, CT 06810)

Review of Accounting and Finance

ISSN: 1475-7702

Article publication date: 1 February 2004

94

Abstract

This study examines the effects of exchange listing change on firms that voluntarily switched from American Stock Exchange to Nasdaq. Prior studies find increased bid‐ask spreads in the short‐term period for these firms after the listing changes. This study extends the literature by examining the long‐term effects of the listing change from American Stock Exchange to Nasdaq. The results suggest that there were no significant changes in bid‐ask spreads, number of trades, and percentage of shares traded from the immediate period after the listing change to the much later periods. This study also finds that there was no significant change in the number of shareholders after the switch. The findings suggest that there is no improvement in liquidity and investor recognition for the switching firms.

Citation

Chan, K.C. and Wong, A. (2004), "Long‐Term Effects Following Voluntary Move From American Stock Exchange to Nasdaq", Review of Accounting and Finance, Vol. 3 No. 2, pp. 48-61. https://doi.org/10.1108/eb043402

Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited

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