Author: Karen Liu Publisher: ISBN: Category : Languages : en Pages : 73
Book Description
It is claimed that exchange listing of its stock benefits a firm by improving its stock liquidity and access to capital, thereby affecting real decisions and consequent outcome variables. Testing this claim empirically encounters obvious and formidable endogeneity problems. This paper empirically examines the causal effect of involuntary delisting from a stock exchange on stock liquidity, access to capital, corporate investment and profitability. Focusing on firms in violation of NASDAQ continued-listing rules between 2000 and 2009, I compare firms that eventually delisted and moved trading of their stock to OTC markets with those that regained compliance and remained on NASDAQ. Market volatility during the delisting grace period is used as an instrumental variable (IV) for the delisting outcome. My findings suggest the following: First, delisting causes stocks to experience reduced daily trading volume, but only if the stock was actively traded prior to delisting; for thinly-traded stocks, there is no effect. Second, surprisingly, the number of investors, institutional ownership or analyst coverage are not affected by delisting. Third, delisting leads to less future equity issuance only if a stock was actively traded prior to delisting. Fourth, delisting has no statistically significant effect on a firm's long-term investments. Fifth, delisting improves long-term gross margin for firms which were thinly-traded prior to delisting. Sixth, delisting does not have statistically significant effect on firm value. Overall, my findings indicate that delisting from a stock exchange is not as costly as commonly believed. This implies that the OTC markets may provide small firms that have limited trading volume with a low-cost, effective market for their stock. My conclusions support the recent policy initiatives to provide alternative listing and trading venues for small public companies.
Author: Barbara Fidanza Publisher: Springer ISBN: 3319950495 Category : Business & Economics Languages : en Pages : 177
Book Description
In an organized and organic way, this book covers all the possible theoretical and empirical facets of delisting, adding to the well-developed literature on IPOs. IPO and delisting are strictly related; the reasons for delisting may be found in the loss of the incentives that drove the firm to the public market in the past. However, the book presents unique motivations not directly related to the IPO decision. This book covers what the existing literature has not in focusing on specific aspects such as market liquidity and microstructure, listing costs, market for corporate control, corporate governance issues and so on. Of interest to academics and students, this contribution puts all pieces in order and finds a thread that can link each theory to the others.
Author: Yakov Amihud Publisher: Now Publishers Inc ISBN: 1933019123 Category : Business & Economics Languages : en Pages : 109
Book Description
Liquidity and Asset Prices reviews the literature that studies the relationship between liquidity and asset prices. The authors review the theoretical literature that predicts how liquidity affects a security's required return and discuss the empirical connection between the two. Liquidity and Asset Prices surveys the theory of liquidity-based asset pricing followed by the empirical evidence. The theory section proceeds from basic models with exogenous holding periods to those that incorporate additional elements of risk and endogenous holding periods. The empirical section reviews the evidence on the liquidity premium for stocks, bonds, and other financial assets.
Author: Robert E. Litan Publisher: Jessica Kingsley Publishers ISBN: 9780815752875 Category : Business & Economics Languages : en Pages : 480
Book Description
The effects of technology on the financial sector are examined in this second in a series of annual volumes on the financial services industry from the Brookings Institution and the Wharton School at the University of Pennsylvania. The papers in this volume, as well as brief comments on the papers, are written by leading financial experts from the corporate, government, and academic communities. Future volumes will address other important issues affecting the financial services industry and thus continue to be a source of invaluable analysis and information for participants in the industry, financial regulators, policymakers, and everyone concerned with financial services. The Brookings-Wharton alliance represented here promises to be a major source of timely and insightful analyses of financial issues in the coming years. Richard Aspinwall, The Chase Manhattan Bank. Contents of this issue will include: -The future of stock exchanges by Maureen O'Hara, Cornell University, and Jonathan R. Macey, Cornell School of Law -The impact of the Internet on financial services by David Coleman, McKinsey & Company, James Marks, Deutsche Bank Securities, Inc., and Hal R. Varian, University of California, Berkeley -The effect on global financial structure by Frederic S. Mishkin, Columbia University, and Philip E. Strahan, Federal Reserve Bank of New York. -Year 2000 issues by John A. Meyer, EDS. -The impact of technology on firms and markets by Zvi Bodie, Boston University -Issues of privacy in the information age by Peter P. Swire, Ohio State University College of Law
Author: Augusto de la Torre Publisher: World Bank Publications ISBN: 0821365444 Category : Business & Economics Languages : en Pages : 232
Book Description
Back in the early 1990s, economists and policy makers had high expectations about the prospects for domestic capital market development in emerging economies, particularly in Latin America. Unfortunately, they are now faced with disheartening results. Stock and bond markets remain illiquid and segmented. Debt is concentrated at the short end of the maturity spectrum and denominated in foreign currency, exposing countries to maturity and currency risk. Capital markets in Latin America look particularly underdeveloped when considering the many efforts undertaken to improve the macroeconomic environment and to reform the institutions believed to foster capital market development. The disappointing performance has made conventional policy recommendations questionable, at best. 'Emerging Capital Markets and Globalization' analyzes where we stand and where we are heading on capital market development. First, it takes stock of the state and evolution of Latin American capital markets and related reforms over time and relative to other countries. Second, it analyzes the factors related to the development of capital markets, with particular interest on measuring the impact of reforms. And third, in light of this analysis, it discusses the prospects for capital market development in Latin America and emerging economies and the implications for the reform agenda.
Author: United States. Congress. House. Committee on Commerce. Subcommittee on Finance and Hazardous Materials Publisher: ISBN: Category : Business & Economics Languages : en Pages : 64
Author: United States. Securities and Exchange Commission. Division of Market Regulation Publisher: ISBN: Category : Securities Languages : en Pages : 462
Author: Karen Liu
Author: Barbara Fidanza
Author: Yakov Amihud
Author: United States. Securities and Exchange Commission
Author: Robert E. Litan
Author: Augusto de la Torre
Author: Yakov Amihud
Author: 
Author: United States. Congress. House. Committee on Commerce. Subcommittee on Finance and Hazardous Materials
Author: United States. Securities and Exchange Commission. Division of Market Regulation