The Puzzle in Post‐Listing Common Stock Returns

  • Author(s): JOHN J. McCONNELL, GARY C. SANGER
  • Published: Apr 30, 2012
  • Pages: 119-140
  • DOI: 10.1111/j.1540-6261.1987.tb02554.x

ABSTRACT

Prior studies indicate that common stocks tend to earn negative returns immediately following listing on the NYSE. The authors document the phenomenon in detail and investigate a number of possible explanations. No full explanation is discovered, although several are ruled out.

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