Firm-initiated and exchange-initiated transfers to continuous trading: Evidence from the Warsaw Stock Exchange

Harald Henke, Beni Lauterbach

Research output: Contribution to journalArticlepeer-review

8 Scopus citations

Abstract

We examine 59 transfers from call auctions to continuous trade on the Warsaw Stock Exchange. The transferred stocks experience an average excess return of about 13%, which can be partly explained by their significant liquidity improvements. Significant liquidity and value reactions are also found in a subsample of transfers initiated by the companies themselves. We are the first to study firm-initiated transfers to continuous trading, and our evidence suggests that exchanges should allow firms that so desire to move their stock to continuous trading.

Original languageEnglish
Pages (from-to)309-323
Number of pages15
JournalJournal of Financial Markets
Volume8
Issue number3
DOIs
StatePublished - Aug 2005

Keywords

  • Continuous trade
  • Eastern europe stock markets
  • Market microstructure

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