Does the Choice Between Listing on the NYSE Versus Nasdaq Matter? An Examination of Firms that Voluntarily Move from the NYSE to Nasdaq

Abstract

This paper provides an update to the body of research on the competition between the New York Stock Exchange and Nasdaq. We examine 49 firms that voluntarily moved from the NYSE to Nasdaq from 2000- 2013 to determine if there are economic benefits to switching exchanges. We find no evidence of any significant economic benefit, and little evidence of an industry clientele effect; switching firms tend to be more like an NYSE firm than a Nasdaq firm and there is little market reaction to the switch announcement. We conclude that the two exchanges appear to be in a state of parity.