Evidence and Implications of Increases in Trading Volume Around Exchange Listings

Posted: 10 Aug 2001

See all articles by Kishore Tandon

Kishore Tandon

CUNY Baruch College - Zicklin School of Business

Gwendolyn P. Webb

City University of New York (CUNY) - Baruch College - Zicklin School of Business

Abstract

After controlling for market volume trends and differences in volume measurement between the Nasdaq and the exchanges, we find that mean trading volumes increase significantly for Nasdaq stocks that list on the Amex or the NYSE. Furthermore, stocks with low (high) pre-listing volume tend to realize the largest volume increases (decreases) as well as the best (worst) post-listing performance. Our results support the hypothesis that stocks with high past trading volumes tend to experience lower future returns, and shed new light on the nature and possible causes of poor post-listing stock performance.

Suggested Citation

Tandon, Kishore and Webb, Gwendolyn P., Evidence and Implications of Increases in Trading Volume Around Exchange Listings. Available at SSRN: https://ssrn.com/abstract=274398

Kishore Tandon (Contact Author)

CUNY Baruch College - Zicklin School of Business ( email )

55 Lexington Avenue
New York, NY 10010
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(646) 312-3468 (Phone)
(646) 312-3451 (Fax)

Gwendolyn P. Webb

City University of New York (CUNY) - Baruch College - Zicklin School of Business ( email )

Department of Economics & Finance
P.O. Box B13-289 1 Bernard Baruch Way
New York, NY 10010
United States
646-312-3485 (Phone)

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