The Operating Performance of Firms that Switch their Stock Listings

Abstract:     
In this article we examine the operating performance of stocks that switch from Nasdaq to the American Stock Exchange (AMEX) or the New Stock Exchange (NYSE) and from AMEX to the NYSE. Specifically, we investigate whether post-listing operating performance is consistent with the reported negative long-term drift of post-listing stock returns and whether there is evidence of self-selection of the listing time. We find evidence of negative post-listing changes in operating return on assets and sales, which, on a match-adjusted basis, are significant for the relatively small Nasdaq stocks switching to AMEX. We also find evidence that firms self-select the time of listing changes.

JEL Classification: G10, G14

Accepted Paper Series