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Stock returns and liquidity after listing switch on the Warsaw Stock Exchange

Author

Listed:
  • Podedworna-Tarnowska Dorota

    (Institute of Value Management, Axiology and Value Measurement Unit, SGH Warsaw School of Economics, al. Niepodległości 162, 02-554, Warszawa, Poland)

  • Kaszyński Daniel

    (Institute of Econometrics, Decision Analysis and Support Unit, SGH Warsaw School of Economics, al. Niepodległości 162, 02-554, Warszawa, Poland)

Abstract

The aim of the article is to evaluate the market reaction to the change of listing venue of companies moving from the alternative market to the regulated market of the Warsaw Stock Exchange. To do so, we investigated 71 switches, and their effect on market returns and liquidity. While the transfer itself creates a negative market reaction, the announcement of the transfer of a company and the institutional confirmation by the supervision of the company’s readiness for this transfer resulting from the approval of the prospectus creates positive market reactions. As a result of the transfer of companies there is an improvement in the liquidity of the shares. The empirical findings of the study could assist managers and investors in understanding the impact of stock exchange migration on returns and the liquidity of shares in the shorter and longer term.

Suggested Citation

  • Podedworna-Tarnowska Dorota & Kaszyński Daniel, 2022. "Stock returns and liquidity after listing switch on the Warsaw Stock Exchange," Economics and Business Review, Sciendo, vol. 8(4), pages 111-135, December.
    • Handle: RePEc:vrs:ecobur:v:8:y:2022:i:4:p:111-135:n:2
    DOI: 10.18559/ebr.2022.4.6
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    alternative market; main market; listing change; stock liquidity;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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