Embeddedness, Social Identity and Mobility: Why Firms Leave NASDAQ and Join NYSE

Administrative Science Quarterly, Vol. 45, June 2000

Posted: 22 Sep 2002

See all articles by Hayagreeva Rao

Hayagreeva Rao

Stanford Graduate School of Business

Gerald F. Davis

University of Michigan, Stephen M. Ross School of Business

Andrew Ward

University of Georgia - Department of Management

Abstract

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

Rao, Hayagreeva and Davis, Gerald F. and Ward, Andrew J., Embeddedness, Social Identity and Mobility: Why Firms Leave NASDAQ and Join NYSE. Administrative Science Quarterly, Vol. 45, June 2000. Available at SSRN: https://ssrn.com/abstract=244054

Hayagreeva Rao

Stanford Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305-5015
United States
(650) 724-7708 (Phone)
(650) 725-7979 (Fax)

HOME PAGE: http://faculty-gsb.stanford.edu/rao/contact.html

Gerald F. Davis (Contact Author)

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI 48109-1234
United States
734-647-4737 (Phone)
734-936-0282 (Fax)

Andrew J. Ward

University of Georgia - Department of Management ( email )

Athens, GA 30602-6254
United States

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