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Appears in Collections:Accounting and Finance Journal Articles
Peer Review Status: Refereed
Title: Bonding and the agency risk premium: An analysis of migrations between the AIM and the Official List of the London Stock Exchange
Authors: Campbell, Kevin
Tabner, Isaac
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Keywords: Corporate Governance
Listing Change
Agency Costs
Agency Risk
Bonding Costs
Alternative Investment Market (AIM)
Issue Date: May-2014
Publisher: Elsevier
Citation: Campbell K & Tabner I (2014) Bonding and the agency risk premium: An analysis of migrations between the AIM and the Official List of the London Stock Exchange, Journal of International Financial Markets, Institutions and Money, 30 (1), pp. 1-20.
Abstract: Firms that change their listing from the less regulated AIM to the more regulated main section of the London Stock Exchange exhibit positive abnormal returns on the announcement day. For firms moving in the opposite direction, both announcement and implementation day abnormal returns are negative. Following implementation, the pattern is reversed for both categories of firm. We show that differences in liquidity, conventional risk factors and in medium to long term firm survival rates between the two listing regimes do not explain the observed patterns of returns, suggesting that the answer lies in the different bonding requirements of the two market segments and an agency risk premium.
Type: Journal Article
DOI Link:
Rights: Published in Journal of International Financial Markets, Institutions and Money by Elsevier; Elsevier believes that individual authors should be able to distribute their accepted author manuscripts for their personal voluntary needs and interests, e.g. posting to their websites or their institution’s repository, e-mailing to colleagues. The Elsevier Policy is as follows: Authors retain the right to use the accepted author manuscript for personal use, internal institutional use and for permitted scholarly posting provided that these are not for purposes of commercial use or systematic distribution. An "accepted author manuscript" is the author’s version of the manuscript of an article that has been accepted for publication and which may include any author-incorporated changes suggested through the processes of submission processing, peer review, and editor-author communications.
Notes: JEL Codes: G12, G14, G15, G30, G32, G34
Affiliation: Accounting and Finance
Accounting and Finance

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