The Operating Performance of Firms that Switch Their Stock Listings


  • George J. Papaioannou,

  • Nickolaos G. Travlos,

  • K. G. Viswanathan

  • We wish to thank the editor, William T. Moore, and Gwendolyn P. Webb, for helpful suggestions. We also appreciate the comments received from seminar participants at the Zarb School of Business at Hofstra University, and the meetings of the 1999 Eastern Finance Association, the 1999 Multinational Finance Society, and the 1999 European Financial Management Association. We thank Jay Ritter for giving us access to his database of seasoned equity offerings. Nick Travlos acknowledges financial support from the Kitty Kyriacopoulos Chair in Finance at ALBA.


In this article we examine the operating performance of stocks that switch from NASDAQ to the American Stock Exchange (AMEX) or the New Stock Exchange (NYSE) and from AMEX to the NYSE. Specifically, we investigate whether post-listing operating performance is consistent with the reported negative long-term drift of post-listing stock returns and whether there is evidence of self-selection of the listing time. We find evidence of negative post-listing changes in operating return on assets and sales, which, on a match-adjusted basis, are significant for the relatively small NASDAQ stocks switching to AMEX. We also find evidence that firms self-select the time of listing changes.