The effect of NYSE listing on a firm's media visibility

H. Kent Baker, Gary E. Powell, Daniel G. Weaver

Research output: Contribution to journalArticlepeer-review

7 Scopus citations

Abstract

The most frequently cited reason by corporate managers for switching their firm's trading location from Nasdaq to the NYSE is to improve visibility. This study examines whether these perceptions about listing are real or illusory and whether firm size affects media visibility. Based on a large sample of firms that listed on the NYSE compared with a matched sample of firms remaining on Nasdaq, the results show that NYSE listing does not lead to gains in media visibility during the period immediately after listing. Over a longer period, small- and medium-sized firms experience significant gains in media visibility compared with large firms. Additional tests show that increased media coverage is attributable much more to the rapid earnings growth before listing than to listing. Therefore, managers erroneously attribute the visibility gains to NYSE listing.

Original languageEnglish (US)
Pages (from-to)19-28
Number of pages10
JournalJournal of Economics and Finance
Volume22
Issue number1
DOIs
StatePublished - 1998
Externally publishedYes

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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