Embeddedness, Social Identity and Mobility: Why Firms Leave NASDAQ and Join NYSE
Administrative Science Quarterly, Vol. 45, June 2000
Posted: 22 Sep 2002
This paper examines why US firms listing on the NASDAQ national market chose to re-list on the New York Stock Exchange from 1987-1994. Using a survival model of contagion and controlling for factors found to influential in prior work, we find that "defectors" from NASDAQ to NYSE started a chain migration process among the firms with which they shared directors. This effect was strongest among firms that had pre-existing director ties to NYSE firms and weakest among firms with prior ties to other NASDAQ firms. The results suggest that board interlocks provide a medium for social contagion in corporate governance.
Note: This is a description of the paper and is not the actual abstract.
Keywords: Embeddedness, identity, mobility, stock exchanges, networks
Suggested Citation: Suggested Citation