The Puzzle in Post-Listing Common Stock Returns

Authors

  • JOHN J. McCONNELL,

  • GARY C. SANGER

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    • Purdue University and Louisiana State University, respectively. The authors wish to thank an anonymous referee and an associate editor of this Journal for helpful suggestions. All remaining errors are our responsibility.

ABSTRACT

Prior studies indicate that common stocks tend to earn negative returns immediately following listing on the NYSE. The authors document the phenomenon in detail and investigate a number of possible explanations. No full explanation is discovered, although several are ruled out.

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