The Long-Run Negative Drift of Post-Listing Stock Returns

J. OF FINANCE, Vol. 50 No. 5, December 1995

Posted: 12 Dec 1995

See all articles by Bala G. Dharan

Bala G. Dharan

Harvard Law School; Berkeley Research Group LLC; Rice University

David L. Ikenberry

Leeds School of Business, University of Colorado Boulder

Multiple version iconThere are 2 versions of this paper

Abstract

After firms move trading in their stock to the American or New York Stock Exchanges, stock returns are generally poor. Although many listing firms issue equity around the time of listing, post-listing performance is not entirely explained by the equity issuance puzzle. Similar to the conclusions regarding other long-run phenomena, poor post-listing performance appears related to managers timing their application for listing. Managers of smaller firms, where initial listing requirements may be more binding, tend to apply for listing prior to a decline in performance. Poor post-listing performance is not observed in larger firms.

JEL Classification: G39

Suggested Citation

Dharan, Bala G. and Ikenberry, David L., The Long-Run Negative Drift of Post-Listing Stock Returns. J. OF FINANCE, Vol. 50 No. 5, December 1995, Available at SSRN: https://ssrn.com/abstract=7005

Bala G. Dharan

Harvard Law School ( email )

1575 Massachusetts
Hauser 406
Cambridge, MA 02138
United States

Berkeley Research Group LLC ( email )

Boston, MA
United States

Rice University ( email )

6100 South Main Street
Houston, TX 77005
United States

David L. Ikenberry (Contact Author)

Leeds School of Business, University of Colorado Boulder ( email )

Boulder, CO 80309-0419
United States
303-492-1809 (Phone)

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