Valuation Effects of Listing on a More Prominent Segment of the Stock Market: Evidence from France
研究法国股票从普通板块转至月结市场的价值效应，发现投资者基础扩大是解释估值提升的关键因素。
We examine the behaviour of stock prices during the period around the transfer to the Marchéà Règlement Mensuel . First, we discuss the financial reasons, which can justify abnormal returns around the transfer. Second, an event study based on a sample of 71 firms is set up to test the existence of the exchange listing effect on the French market. Third, we explore three hypotheses in order to explain the impact on stock returns: the informative content of the transfer, the increase in the relative size of the firm’s investor base, and the reduction of trading costs (immediacy and adverse selection). Cross–sectional regressions show that the increase in the relative size of the firm’s investor base is the only variable, which helps to explain the valuation effect.