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Stock Exchange Mergers and Weak-Form Information Efficiency: Evidence from the OMX Nordic and Baltic Consolidation
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Business Administration.
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.ORCID iD: 0000-0003-4145-7894
2018 (English)In: The Nordic Journal of Business, ISSN 2342-9003, E-ISSN 2342-9011, Vol. 67, no 2, p. 114-136Article in journal (Refereed) Published
Abstract [en]

In this paper, we study whether the creation of a uniform Nordic and Baltic stock trading platform has affected weak-form information efficiency. A time-varying measure of return predictability for individual stocks is used in a panel-data seting to test for stock market merger effects. The results indicate that the stock market consolidations have had a positive effect on the information efficiency and turnover for an average firm. The merger effects are, however, asymmetrically distributed, indicating, among other, a flight to liquidity effect, i.e. relatively large (small) firms located on relatively large (small) markets experience an improved (reduced) information efficiency.

Place, publisher, year, edition, pages
Aalto: Association of business Schools, Aalto University , 2018. Vol. 67, no 2, p. 114-136
Keywords [en]
Time-varying return predictability, turnover, market structure
National Category
Economics
Identifiers
URN: urn:nbn:se:umu:diva-163496OAI: oai:DiVA.org:umu-163496DiVA, id: diva2:1353501
Available from: 2019-09-23 Created: 2019-09-23 Last updated: 2024-07-02Bibliographically approved

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
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  • Other locale
More languages
Output format
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