A False Perception? The relative riskiness of AIM and listed Stocks
AbstractThis research examines the perception that the AIM market is riskier than the Official List market in comparable stocks. The empirical analysis uses high frequency data for January 2000 to December 2004 on 533 AIM stocks and 264 comparable Official List stocks. Risk is measured in a variety of ways. At a superficial level AIM stocks appear riskier than comparable Official List stocks. However, as the analysis is refined to ensure the comparison focuses purely on the effects of being listed on different markets, the additional AIM risk shrinks and finally disappears. This conclusion concurs with the current market practitioner view that there is no significant risk differential.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Henley Business School, Reading University in its series ICMA Centre Discussion Papers in Finance with number icma-dp2006-01.
Length: 40 pages
Date of creation: Oct 2005
Date of revision:
Contact details of provider:
Postal: PO Box 218, Whiteknights, Reading, Berks, RG6 6AA
Phone: +44 (0) 118 378 8226
Fax: +44 (0) 118 975 0236
Web page: http://www.henley.reading.ac.uk/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kutsuna, Kenji & Okamura, Hideo & Cowling, Marc, 2002. "Ownership structure pre- and post-IPOs and the operating performance of JASDAQ companies," Pacific-Basin Finance Journal, Elsevier, vol. 10(2), pages 163-181, April.
- William P. Rees, 1997. "The Arrival Rate of Initial Public Offers in the UK," European Financial Management, European Financial Management Association, vol. 3(1), pages 45-62.
- J. F. Bacmann & M. Dubois & C. Ertur, 2002. "Valuation Effects of Listing on a More Prominent Segment of the Stock Market: Evidence from France," European Financial Management, European Financial Management Association, vol. 8(4), pages 479-493.
- Espenlaub, S. & Goergen, M. & Khurshed, A. & Renneboog, L.D.R., 2002. "Lock-In Agreements in Venture Capital Backed UK IPOs," Discussion Paper 2002-46, Tilburg University, Center for Economic Research.
- Kenji Kutsuna & Marc Cowling & Paul Westhead, 2000. "The short-run performance of JASDAQ companies and venture capital involvement before and after flotation," Venture Capital, Taylor & Francis Journals, vol. 2(1), pages 1-25, January.
- Reena Aggarwal & James J. Angel, .
"The Rise and Fall of the AMEX Emerging Company Marketplace,"
_002, Georgetown School of Business.
- Aggarwal, Reena & Angel, James J., 1999. "The rise and fall of the Amex Emerging Company Marketplace," Journal of Financial Economics, Elsevier, vol. 52(2), pages 257-289, May.
- Wagner, Niklas, 2004. "Time-varying moments, idiosyncratic risk, and an application to hot-issue IPO aftermarket returns," Research in International Business and Finance, Elsevier, vol. 18(1), pages 59-72, April.
- Ying, Louis K. W. & Lewellen, Wilbur G. & Schlarbaum, Gary G. & Lease, Ronald C., 1977. "Stock Exchange Listings and Securities Returns," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 12(03), pages 415-432, September.
- Sami Torstila, 2001. "What Determines IPO Gross Spreads in Europe?," European Financial Management, European Financial Management Association, vol. 7(4), pages 523-541.
- Goergen, M. & Khurshed, A. & McCahery, J.A. & Renneboog, L.D.R., 2002. "The Rise and Fall of the European New Markets: On the Short and Long-Run Performance of High-Tech Initial Public Offerings," Discussion Paper 2002-101, Tilburg University, Center for Economic Research.
- K. McCaffrey & P. Hamill, 2000. "Dividend initiation announcements effects in initial public offerings," Applied Financial Economics, Taylor & Francis Journals, vol. 10(5), pages 533-542.
- Christian Leuz, 2003. "IAS Versus U.S. GAAP: Information Asymmetry-Based Evidence from Germany's New Market," Journal of Accounting Research, Wiley Blackwell, vol. 41(3), pages 445-472, 06.
- Franzke, Stefanie A. & Schlag, Christian, 2003. "Over-allotment options in IPOs on Germany's Neuer Markt: An empirical investigation," CFS Working Paper Series 2002/16, Center for Financial Studies (CFS).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ed Quick).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.