<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>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.</p>
</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.

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

Economics and Business Review

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Stock returns and liquidity after listing switch on the Warsaw Stock Exchange"}

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...

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

Published Online: Jan 11, 2023

Page range: 111 - 135

Received: Oct 25, 2022

Accepted: Dec 16, 2022

DOI: https://doi.org/10.18559/ebr.2022.4.6

Keywords
alternative market, main market, listing change, stock liquidity

© 2022 Dorota Podedworna-Tarnowska et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

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

Published Online: Jan 11, 2023

Page range: 111 - 135

Received: Oct 25, 2022

Accepted: Dec 16, 2022

DOI: https://doi.org/10.18559/ebr.2022.4.6

Keywordsalternative market, main market, listing change, stock liquidity

© 2022 Dorota Podedworna-Tarnowska et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
alternative market, main market, listing change, stock liquidity