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Trading Costs and Exchange Delisting: The Case of Firms that Voluntarily Move from the American Stock Exchange to the Nasdaq
Author(s) -
CLYDE PAUL,
SCHULTZ PAUL,
ZAMAN MIR
Publication year - 1997
Publication title -
the journal of finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 18.151
H-Index - 299
eISSN - 1540-6261
pISSN - 0022-1082
DOI - 10.1111/j.1540-6261.1997.tb02753.x
Subject(s) - stock exchange , stock (firearms) , business , monetary economics , listing (finance) , cross listing , market maker , financial economics , economics , finance , stock market , corporate governance , geography , context (archaeology) , archaeology
ABSTRACT We examine 47 stocks that voluntarily left the American Stock Exchange from 1992 through 1995 and listed on the Nasdaq. We find that both effective and quoted spreads increase by about 100 percent after listing on the Nasdaq. These spread changes are consistent across stocks. In contrast, excess returns are positive when firms announce a switch from The American Stock Exchange to the Nasdaq. We are unable to explain this apparent contradiction.