The curious case of changes in trading dynamics: When firms switch from NYSE to NASDAQ

Dang, VA; Michayluk, D; Pham, TP

The curious case of changes in trading dynamics: When firms switch from NYSE to NASDAQ

Dang, VA Michayluk, D

Pham, TP

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Publication Type:: Journal Article
Citation:: Journal of Financial Markets, 2018, 41 pp. 17 - 35
Issue Date:: 2018-11-01

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Field	Value	Language
dc.contributor.author	Dang, VA	en_US
dc.contributor.author	Michayluk, D https://orcid.org/0000-0001-9020-0855	en_US
dc.contributor.author	Pham, TP	en_US
dc.date.issued	2018-11-01	en_US
dc.identifier.citation	Journal of Financial Markets, 2018, 41 pp. 17 - 35	en_US
dc.identifier.issn	1386-4181	en_US
dc.identifier.uri	http://hdl.handle.net/10453/130465
dc.description.abstract	© 2018 Elsevier B.V. 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.	en_US
dc.relation.ispartof	Journal of Financial Markets	en_US
dc.relation.isbasedon	10.1016/j.finmar.2018.07.001	en_US
dc.subject.classification	Finance	en_US
dc.title	The curious case of changes in trading dynamics: When firms switch from NYSE to NASDAQ	en_US
dc.type	Journal Article
utslib.citation.volume	41	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Finance Discipline
utslib.copyright.status	closed_access
pubs.publication-status	Published	en_US
pubs.volume	41	en_US

Abstract:

© 2018 Elsevier B.V. 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.

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http://hdl.handle.net/10453/130465