Long‐Term Effects Following Voluntary Move From American Stock Exchange to Nasdaq Available to Purchase

This study examines the effects of exchange listing change on firms that voluntarily switched from American Stock Exchange to Nasdaq. Prior studies find increased bid‐ask spreads in the short‐term period for these firms after the listing changes. This study extends the literature by examining the long‐term effects of the listing change from American Stock Exchange to Nasdaq. The results suggest that there were no significant changes in bid‐ask spreads, number of trades, and percentage of shares traded from the immediate period after the listing change to the much later periods. This study also finds that there was no significant change in the number of shareholders after the switch. The findings suggest that there is no improvement in liquidity and investor recognition for the switching firms.