6533b85cfe1ef96bd12bd21f
RESEARCH PRODUCT
Valuation Effects of Listing on a More Prominent Segment of the Stock Market: Evidence from France
Michel DuboisC. ErturJ. F. Bacmannsubject
Valuation effectsOrder (exchange)AccountingEvent studyEconomicsEconometricsStock marketListing (finance)General Economics Econometrics and FinanceStock (geology)Market liquidityValuation (finance)description
We examine the behaviour of stock prices during the period around the transfer to the Marchea Reglement Mensuel. First, we discuss the financial reasons, which can justify abnormal returns around the transfer. Second, an event study based on a sample of 71 firms is set up to test the existence of the exchange listing effect on the French market. Third, we explore three hypotheses in order to explain the impact on stock returns: the informative content of the transfer, the increase in the relative size of the firm’s investor base, and the reduction of trading costs (immediacy and adverse selection). Cross–sectional regressions show that the increase in the relative size of the firm’s investor base is the only variable, which helps to explain the valuation effect.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2002-12-01 | European Financial Management |