The effect of listing switches from a growth market to a main board: An alternative perspective

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• 作者：Jong-Ho Park^a ; Ki Beom Binh^b ; Kyong Shik Eom^c ; ^{kseom2@gmail.com}
• 关键词：G12 ; G32 ; C33
• 刊名：Emerging Markets Review
• 出版年：2016
• 出版时间：December 2016
• 年：2016
• 卷：29
• 期：Complete
• 页码：246-273
• 全文大小：439 K
• 卷排序：29

文摘

We examine whether firms switching listings from the Korean growth market (KOSDAQ) to the main board (KOSPI) experienced improved trading-related market quality. We focus on market macrostructure and use a difference-in-difference technique with nearest matching. Contrary to previous research and practitioners' opinions, we find that trading-related market quality mostly deteriorated or remained unchanged following the switch, indicating that the specific market macrostructure of a country matters. Listing switches produce a negative externality by weakening KOSDAQ and thereby impairing funding for innovative new firms, suggesting that policymakers should encourage firms whose characteristics fit the standalone growth market to remain listed there.