NYSE listings and firm borrowing costs: An empirical investigation

This paper examines the relationship between borrowing rates and switching the listing of a firm's stock to the NYSE. Using a sample of syndicated corporate loans, we find that firms switching from either NASDAQ or AMEX to NYSE experience a significant decrease in borrowing rates for revolving...

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Bibliographic Details
Published in:Global finance journal 2010, Vol.21 (1), p.26-42
Main Authors: Gottesman, Aron A., Nam, Jouahn, Thornton, John H., Wynne, Kevin
Format: Article
Language:English
Subjects:
AMEX
AMEX NASDAQ NYSE listings Propensity score Syndicated corporate loans Listing requirements
Borrowing
Correlation analysis
Listing requirements
NASDAQ
NYSE listings
Participating loans
Propensity score
Securities markets
Studies
Syndicated corporate loans
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Summary:This paper examines the relationship between borrowing rates and switching the listing of a firm's stock to the NYSE. Using a sample of syndicated corporate loans, we find that firms switching from either NASDAQ or AMEX to NYSE experience a significant decrease in borrowing rates for revolving loans and pay lower commitment fees for the unused portion of these lines. The results are robust when using a propensity score matching technique to identify non-switching firms that match switching firms along an array of loan and firm specific characteristics. The empirical findings in this paper have implications for the global markets, given the continued consolidation of international equity exchanges.
ISSN:1044-0283
1873-5665
DOI:10.1016/j.gfj.2010.03.002