EVIDENCE OF MANAGERIAL TIMING: THE CASE OF EXCHANGE LISTINGS

Abstract

Abstract Before an exchange listing, stock performance is exceptionally high. Earlier research reports that post‐listing performance is poor. I document that the post‐listing performance of most firms that list on either the American Stock Exchange or the New York Stock Exchange differs little from that of similar stocks that do not list. However, listing stocks that experience the highest pre‐listing performance underperform their control stocks after listing. This finding supports the hypothesis that managers can time exchange listings around a peak in stock performance.