Valuation Effects of Listing on a More Prominent Segment of the Stock Market: Evidence from France

Bacmann, Jean-François; Dubois, Michel; Ertur, Cem

doi:10.1111/1468-036x.00200

Cited by 11 publications

(8 citation statements)

References 21 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…and the possibility that return generating model parameters such as the intercept and market risk may differ before and after the implementation date (see for example, Baker and Edelman 1992a;Bacmann et al 2002;Carlson, Fisher and Giammarino 2010). Following Glosten and Milgrom (1985), the bid-ask-spread variable controls for both liquidity and time variation in information asymmetry.…”

Section: Consistent With Our Two Hypotheses the Results Inmentioning

confidence: 99%

Bonding and the agency risk premium: An analysis of migrations between the AIM and the Official List of the London Stock Exchange

Campbell¹,

Tabner²

2014

Journal of International Financial Markets, Institutions and Mo

View full text Add to dashboard Cite

Firms that change their listing from the less regulated AIM to the more regulated main section of the London Stock Exchange exhibit positive abnormal returns on the announcement day. For firms moving in the opposite direction, both announcement and implementation day abnormal returns are negative. Following implementation, the pattern is reversed for both categories of firm. We show that differences in liquidity, conventional risk factors and in medium to long term firm survival rates between the two listing regimes do not explain the observed patterns of returns, suggesting that the answer lies in the different bonding requirements of the two market segments and an agency risk premium.

show abstract

Section: Consistent With Our Two Hypotheses the Results Inmentioning

confidence: 99%

Bonding and the agency risk premium: An analysis of migrations between the AIM and the Official List of the London Stock Exchange

Campbell¹,

Tabner²

2014

Journal of International Financial Markets, Institutions and Mo

View full text Add to dashboard Cite

show abstract

“…Section 4 concludes. 11 Along the lines with IRH, Bacmann et al (2002) find evidence that the increase in the relative size of the firm's investor base can explain the stock prices reaction during the period of the listing transfer to the more efficient stock exchange on the French market.…”

Section: Introductionmentioning

confidence: 97%

Can Companies Influence Investor Behaviour through Advertising? Super Bowl Commercials and Stock Returns

Fehle

Tsyplakov

Zdorovtsov

2005

Euro Fin Management

View full text Add to dashboard Cite

"Recent research shows that mood and attention may affect investors' choices. In this paper we examine whether companies can create such mood and attention effects through advertising. We choose a natural experiment by investigating price reactions and trading activity for firms employing TV commercials in 19 Super Bowl broadcasts over the 1969-2001 period. We find significant positive abnormal returns for firms which are readily identifiable from the ad contents, which is consistent with the presence of mood and attention effects. For recognisable companies with the number of ads greater than the sample mean, the event is followed by an average abnormal one day return of 45 basis points. The effect appears to persist in the short term with the 20-day post-event cumulative abnormal returns for such firms averaging 2%. We find significant abnormal net buying activity for small trades in shares of recognised Super Bowl advertisers indicating that small investors tend to be the ones most attracted by the increased publicity". Copyright Blackwell Publishers Ltd, 2005.

show abstract

“…This is particularly low when compared to the US market, where stocks priced under $5 are usually called penny stocks, in a somewhat pejorative manner. 4 Furthermore, prices in Portugal are also low when compared to other European 1 Bacmann et al (2002) provide consistent evidence from the French stock market. 2 In centralised order flow markets, one can also make the argument that if a lower price results in a higher relative bid-ask spread, then the market maker is encouraged to promote trading in this stock to increase his profits.…”

Section: Introductionmentioning

confidence: 75%

Tiny Prices in a Tiny Market: Evidence from Portugal on Optimal Share Prices

Pereira¹,

Cutelo²

2011

European Financial Management

View full text Add to dashboard Cite

The Portuguese stock market provides a natural experimental area to analyse theories of optimal price per share. Its characteristics suggest that prices should be very low. Using a sample of 20 stocks from the main Portuguese Stock Index from 1999 to 2010, we observe that Portuguese corporations indeed seek extremely low prices per share through stock splits and similar actions. However, we find that low-price stocks are actually less liquid than high-price stocks. Furthermore, low-price stocks trade at lower valuation ratios. Our results do not support any of the existing theories on optimal price per share and therefore add to the nominal share price puzzle.

show abstract

Valuation Effects of Listing on a More Prominent Segment of the Stock Market: Evidence from France

Cited by 11 publications

References 21 publications

Bonding and the agency risk premium: An analysis of migrations between the AIM and the Official List of the London Stock Exchange

Bonding and the agency risk premium: An analysis of migrations between the AIM and the Official List of the London Stock Exchange

Can Companies Influence Investor Behaviour through Advertising? Super Bowl Commercials and Stock Returns

Tiny Prices in a Tiny Market: Evidence from Portugal on Optimal Share Prices

Contact Info

Product

Resources

About