The Curious Case of Changes in Trading Dynamics: When Firms Switch from NYSE to NASDAQ

55 Pages Posted: 1 Aug 2018

See all articles by Viet Anh Dang

Viet Anh Dang

Alliance Manchester Business School

David Michayluk

University of Technology Sydney (UTS) - School of Finance and Economics; Financial Research Network (FIRN); Centre for International Finance and Regulation (CIFR)

Thu Phuong Pham

University of Adelaide; IPAG Business School; Financial Research Network (FIRN)

Date Written: April 2018

Abstract

Voluntarily switching trading location from the New York Stock Exchange to the NASDAQ is a new phenomenon, with 53 companies making the switch since 2000. We examine the stated reasons for the move and investigate the consistency with the subsequent market dynamics, including effects on liquidity, trading activity, and visibility. We find the move to the NASDAQ increases trading costs, improves visibility, attracts more liquidity providers in the long term, explaining the subsequent increase in trading volume and supporting many of the management statements justifying the move. Our findings suggest multi-dimensional aspects may be important considerations in moves between exchanges.

Keywords: Trading Costs, Volume, Exchange Listing, NYSE, NASDAQ

JEL Classification: G10, G15, G18

Suggested Citation

Dang, Viet Anh and Michayluk, David and Pham, Thu Phuong, The Curious Case of Changes in Trading Dynamics: When Firms Switch from NYSE to NASDAQ (April 2018). Journal of Financial Markets, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3210223

Viet Anh Dang

Alliance Manchester Business School ( email )

AMBS Crawford House
Booth Street West
Manchester, Greater Manchester M15 6PB
United Kingdom
+44(0)16127 50438 (Phone)

David Michayluk

University of Technology Sydney (UTS) - School of Finance and Economics ( email )

Finance Discipline Group
UTS Business
Sydney, NSW 2007
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

Centre for International Finance and Regulation (CIFR) ( email )

Level 7, UNSW CBD Campus
1 O'Connell Street
Sydney, NSW 2000
Australia

Thu Phuong Pham (Contact Author)

University of Adelaide ( email )

10 Pulteney Street
Adelaide, South Australia 5005
Australia

IPAG Business School ( email )

184 BD Saint Germain
Paris, 75006
France

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

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