The Initial Listing Decisions of Firms that Go Public

33 Pages Posted: 27 Aug 1998

See all articles by Shane A. Corwin

Shane A. Corwin

University of Notre Dame - Mendoza College of Business

Jeffrey H. Harris

American University - Department of Finance and Real Estate

Date Written: July 1998

Abstract

We analyze the initial listing decisions of IPOs that qualify for New York Stock Exchange listing. We find that IPOs are more likely to list on the exchange where their industry peers are listed. Further, reverse LBOs and carveouts are more likely to choose the NYSE if the firm or their parent was previously NYSE-listed. Consistent with avoidance of delisting costs, we find that smaller, riskier firms tend to list on Nasdaq. Although direct issue costs are higher on the NYSE than on Nasdaq, total issue costs do not differ across exchanges and are unlikely to affect the listing decision.

JEL Classification: G12

Suggested Citation

Corwin, Shane A. and Harris, Jeffrey H., The Initial Listing Decisions of Firms that Go Public (July 1998). Available at SSRN: https://ssrn.com/abstract=112049 or http://dx.doi.org/10.2139/ssrn.112049

Shane A. Corwin (Contact Author)

University of Notre Dame - Mendoza College of Business ( email )

240 Mendoza College of Business
Notre Dame, IN 46556-0399
United States

Jeffrey H. Harris

American University - Department of Finance and Real Estate ( email )

Kogod School of Business
4400 Massachusetts Ave., N.W.
Washington, DC 20016-8044
United States
202-885-6669 (Phone)

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