This study examines whether visibility changes for companies moving from Nasdaq to the Amex. A control sample of companies that did not leave the Nasdaq Stock Market serves as a basis for comparing changes in visibility. Four proxies are used to measure visibility: (1) the number of analysts estimating the company's next fiscal year's earnings (NOA), (2) the number of institutional shareholders (NOI), (3) the number of shares held by institutions (NOS), and (4) the number of citations in The Wall Street Journal (NOC). The initial evidence supports a relationship between Amex listing and visibility gains when measured by NOI, NOS, and NOC. Small companies show significant visibility gains in NOA. The findings contain evidence that companies seeking Amex listing are generally neglected by analysts and institutions. Regression analysis provides additional evidence that Amex listing, not earnings growth, helps to explain visibility gains in NOI, NOS, and NOC.
All Science Journal Classification (ASJC) codes
- Economics and Econometrics
- Exchange listing