Specialist Performance and New Listing Allocations on the NYSE: An Empirical Analysis

34 Pages Posted: 23 Jun 2001

See all articles by Shane A. Corwin

Shane A. Corwin

University of Notre Dame - Mendoza College of Business

Date Written: May 2001

Abstract

This study analyzes the criteria used to allocate stocks to specialist firms on the NYSE. Non-performance variables play a predominant role in the allocation process, with large specialist firms receiving the majority of new listings. Controlling for size, more-profitable and less-profitable listings tend to be equitably distributed across specialist firms and specialists are more likely to receive allocations if they have not received a recent allocation or have recently had stocks delisted. Preference is also given to specialist firms that already trade other stocks in the same industry or stocks of the same type (funds and non-U.S. securities). Changes to the Allocation Policy in 1997 appear to have resulted in a subset of specialist firms being repeatedly awarded allocations, while others are repeatedly denied allocations.

Suggested Citation

Corwin, Shane A., Specialist Performance and New Listing Allocations on the NYSE: An Empirical Analysis (May 2001). Available at SSRN: https://ssrn.com/abstract=272453 or http://dx.doi.org/10.2139/ssrn.272453

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

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