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Does NYSE Listing Affect Firm Visibility?

Author

Listed:
  • H. Kent Baker
  • Gary E. Powell
  • Daniel G. Weaver

Abstract

Corporate managers often cite improved firm visibility as a motive for listing on the New York Stock Exchange (NYSE). We use three proxies to test this motive: the number of analysts following a firm, the number of institutional shareholders, and the number of shares held by institutions. We compare visibility changes over successive six-month periods for a sample of firms that listed on the NYSE and find that the changes in the post-listing period are less than the changes for the two pre-listing periods. Further tests suggest that increased visibility for a firm is primarily associated with changes in market capitalization, not with listing itself.

Suggested Citation

  • H. Kent Baker & Gary E. Powell & Daniel G. Weaver, 1999. "Does NYSE Listing Affect Firm Visibility?," Financial Management, Financial Management Association, vol. 28(2), Summer.
    • Handle: RePEc:fma:fmanag:baker99
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    Citations

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    Cited by:

    1. Pankaj K. Jain & Jang‐Chul Kim, 2006. "Investor Recognition, Liquidity, and Exchange Listings in the Reformed Markets," Financial Management, Financial Management Association International, vol. 35(2), pages 21-42, June.
    2. Papaioannou, George J. & Travlos, Nickolaos G. & Viswanathan, K.G., 2009. "Visibility effects and timing in stock listing changes: Evidence from operating performance," The Quarterly Review of Economics and Finance, Elsevier, vol. 49(2), pages 357-377, May.
    3. Richard Schroeder & David A. Schauer, 2008. "SFAS No. 123R: the controversy and its economic consequences," Managerial Auditing Journal, Emerald Group Publishing, vol. 23(3), pages 295-306, March.
    4. Valero, Magali & Lee, Hei Wai & Cai, Nianyun (Kelly), 2009. "Cross-listing pursuit of unseasoned foreign firms after going public in the U.S," Journal of Business Research, Elsevier, vol. 62(8), pages 797-804, August.
    5. Bagella, Michele & Becchetti, Leonardo & Adriani, Fabrizio, 2005. "Observed and "fundamental" price-earning ratios: A comparative analysis of high-tech stock evaluation in the US and in Europe," Journal of International Money and Finance, Elsevier, vol. 24(4), pages 549-581, June.
    6. Josef Pallas & Emma Svensson, 2016. "Typical Tools for Assessment of Communicative Performance," Corporate Reputation Review, Palgrave Macmillan, vol. 19(1), pages 47-58, February.
    7. Jacobs, Heiko & Weber, Martin, 2015. "On the determinants of pairs trading profitability," Journal of Financial Markets, Elsevier, vol. 23(C), pages 75-97.
    8. Tse, Yiuman & Devos, Erik, 2004. "Trading costs, investor recognition and market response: An analysis of firms that move from the Amex (Nasdaq) to Nasdaq (Amex)," Journal of Banking & Finance, Elsevier, vol. 28(1), pages 63-83, January.
    9. Leonardo Becchetti & Fabrizio Adriani, 2004. "Do high-tech stock prices revert to their 'fundamental' value?," Applied Financial Economics, Taylor & Francis Journals, vol. 14(7), pages 461-476.
    10. Bruner, Robert & Chaplinsky, Susan & Ramchand, Latha, 2006. "Coming to America: IPOs from emerging market issuers," Emerging Markets Review, Elsevier, vol. 7(3), pages 191-212, September.
    11. Andres, Christian & Betzer, André & Limbach, Peter, 2014. "Underwriter reputation and the quality of certification: Evidence from high-yield bonds," Journal of Banking & Finance, Elsevier, vol. 40(C), pages 97-115.
    12. Marie Racine & Craig Wilson & Michael Wynes, 2020. "The Value of Apology: How do Corporate Apologies Moderate the Stock Market Reaction to Non-Financial Corporate Crises?," Journal of Business Ethics, Springer, vol. 163(3), pages 485-505, May.
    13. Hao Huang & Yaping Chang & Liyuan Zhang, 2023. "CEO's marketing experience and firm green innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5211-5233, December.
    14. Wei Li & Weining Li & Veikko Seppänen & Timo Koivumäki, 2023. "Effects of greenwashing on financial performance: Moderation through local environmental regulation and media coverage," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 820-841, January.
    15. Omaima A.G. Hassan, 2018. "The impact of voluntary environmental disclosure on firm value: Does organizational visibility play a mediation role?," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1569-1582, December.
    16. Seda Oz, 2020. "Did SFAS 166/167 decrease the information asymmetry of securitizing banks?," The Financial Review, Eastern Finance Association, vol. 55(4), pages 557-581, November.
    17. Boehme, Rodney D. & Danielsen, Bartley R. & Kumar, Praveen & Sorescu, Sorin M., 2009. "Idiosyncratic risk and the cross-section of stock returns: Merton (1987) meets Miller (1977)," Journal of Financial Markets, Elsevier, vol. 12(3), pages 438-468, August.
    18. Yang, Chau-Chen & Baker, H. Kent & Chou, Li-Chuan & Lu, Bo-Wei, 2009. "Does switching from NASDAQ to the NYSE affect investment-cash flow sensitivity?," Journal of Business Research, Elsevier, vol. 62(10), pages 1007-1012, October.
    19. Gottesman, Aron A. & Nam, Jouahn & Thornton Jr., John H. & Wynne, Kevin, 2010. "NYSE listings and firm borrowing costs: An empirical investigation," Global Finance Journal, Elsevier, vol. 21(1), pages 26-42.
    20. Chen, Hsuan-Chi & Fauver, Larry & Yang, Pei-Ching, 2009. "What do investment banks charge to underwrite American Depositary Receipts?," Journal of Banking & Finance, Elsevier, vol. 33(4), pages 609-618, April.
    21. Kedia, Simi & Panchapagesan, Venkatesh, 2011. "Why do only some Nasdaq firms switch to the NYSE? Evidence from corporate transactions," Journal of Financial Markets, Elsevier, vol. 14(1), pages 109-126, February.
    22. Benjamin Hammer & Nils Janssen & Bernhard Schwetzler, 2021. "Cross-border buyout pricing," Journal of Business Economics, Springer, vol. 91(5), pages 705-731, July.
    23. Kevin D. Broom, 2013. "The NASDAQ Restructuring: Do Names Even Matter?," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 4(2), pages 1-18, April.
    24. Chen, Hung-Ling & Chow, Edward H., 2011. "The impact of investor base on the costs of capital for IPOs," Journal of Multinational Financial Management, Elsevier, vol. 21(3), pages 177-190, July.

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