Journal
JOURNAL OF FINANCIAL MARKETS
Volume 41, Issue -, Pages 17-35Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/j.finmar.2018.07.001
Keywords
Trading costs; Volume; Exchange listing; NYSE; NASDAQ
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Voluntarily switching trading location from the New York Stock Exchange to the NASDAQ is a new phenomenon, with 53 companies making the switch since 2000. We examine the stated reasons for the move and investigate the consistency with the subsequent market dynamics, including effects on liquidity, trading activity, and visibility. We find the move to the NASDAQ increases trading costs, improves visibility, attracts more liquidity providers in the long term, explaining the subsequent increase in trading volume and supporting many of the management statements justifying the move. Our findings suggest multidimensional aspects may be important considerations in moves between exchanges. (C) 2018 Elsevier B.V. All rights reserved.
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