Stock exchange

About: Stock exchange is a research topic. Over the lifetime, 39566 publications have been published within this topic receiving 612044 citations.

Competition and the Pricing of Dealer Service in the Over-the-Counter Stock Market

Abstract: The stock market is in the midst of an era of change unparalleled since the Great Depression, long-standing institutions — including the major stock exchanges — are being radically challenged by contemporary developments, and novel approaches to making markets for common stocks are appearing with increasing frequency. In addition, the Martin Report and the recent hearings of the Securities and Exchange Commission on the future structure of the equities market indicate that the regulatory climate surrounding the stock market can be expected to undergo serious change in the near future.

Commonality in liquidity : evidence from an order-driven market structure

Abstract: Events such as the 1997 East Asian financial crisis indicate that individual firm liquidity is strongly influenced by marketwide factors Previous market microstructure research, however, focuses almost exclusively on the firm-specific attributes of liquidity Our study follows the recent shift in emphasis toward commonality by examining systematic liquidity in an order-driven market structure Using data from the Stock Exchange of Hong Kong, we show that commonality in liquidity includes both market and industry components, and is pervasive across size-sorted portfolios We also find a significant market and industry component in individual firms' order flow In contrast to quote-driven results, we do not find a positive relation between firm size and sensitivity to changes in marketwide bid-ask spreads

The investment and operating performance of Japanese initial public offerings

Abstract: This paper studies long-run stock returns and the operating performance of 180 initial public offerings (IPOs) listed on the Tokyo Stock Exchange during the 1971–1992 period. The aftermarket downward drift is not only confirmed but also found to be large in magnitude relative to a number of benchmarks. In contrast to evidence from the US, the post-issue deterioration in operating performance cannot be attributed to the reduced managerial ownership. This provides strong support for the ‘windows of opportunity’ explanation for the new issue puzzle by Loughran and Ritter (1995, 1996).

International Convergence of Accounting Practices: Choosing between IAS and US GAAP

Abstract: This study examines reporting practices of a sample of foreign listed and domestic-only listed companies from the United Kingdom, France, Germany, Japan and Australia to determine the extent to which companies voluntarily use “international” standards. Two types of use of non-national standards in the consolidated accounts presented to the public are considered: adoption of “international” standards instead of national standards, and supplementary use where “international” standards are used in conjunction with national standards. “International” standards are defined as US GAAP or IAS (now IFRS). The study tests for a preference for either set of standards and considers the relationship of choice of regime with firm attributes. The results show significant voluntary use of “international” standards in all five countries and among foreign listed and domestic-only listed companies. Companies using “international” standards are likely to be larger, have more foreign revenue and to be listed on one or more foreign stock exchanges. US GAAP is the predominant choice, but IAS are used by many firms in Germany and some in Japan. Firms listed in the United States' regulated markets (NYSE and NASDAQ) are more likely to choose US GAAP, but companies traded in the OTC market often select IAS. The study demonstrates for managers and regulators that there is considerable support for “international” standards, and that choice of IAS or US GAAP relates to specific firm characteristics which differ according to a firm's country of origin. Most use of “international” standards reflects individual countries' institutional frameworks, confirming the key role of national regulators and standard setters in assisting companies to achieve more comparable international reporting.