Investor base, cost of capital, and new listings on the NYSE
dc.contributor.author | Kadlec, Gregory B. | en |
dc.contributor.author | McConnell, John J. | en |
dc.date.accessioned | 2023-08-11T13:33:12Z | en |
dc.date.available | 2023-08-11T13:33:12Z | en |
dc.date.issued | 2023-04 | en |
dc.description.abstract | In this article, we report the results of our recent study of 273 companies that during the 1980s decided to switch the trading locale of their shares from the over-the-counter (OTC) or NASDAQ market to the NYSE. We found that share prices increased by about 6%, on average, at the time the stocks became listed on the NYSE, and that the investor base of these firms increased by almost 20%. We also found that the average stock experienced a reduction in bid/ask spread of about 5% after listing. In an analysis of the relation among share prices, investor base, and bid/ask spread, we found that the stock price increase was significantly correlated with both the percentage increase in investor base and the reduction in bid/ask spread. | en |
dc.description.version | Published version | en |
dc.format.mimetype | application/pdf | en |
dc.identifier.doi | https://doi.org/10.1111/jacf.12538 | en |
dc.identifier.eissn | 1745-6622 | en |
dc.identifier.issn | 1078-1196 | en |
dc.identifier.uri | http://hdl.handle.net/10919/116021 | en |
dc.language.iso | en | en |
dc.publisher | Wiley | en |
dc.rights | Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International | en |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/4.0/ | en |
dc.subject | stock-exchange listings | en |
dc.title | Investor base, cost of capital, and new listings on the NYSE | en |
dc.title.serial | Journal of Applied Corporate Finance | en |
dc.type | Article - Refereed | en |
dc.type.dcmitype | Text | en |
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