NYSE listings and firm borrowing costs: An empirical investigation

This paper examines the relationship between borrowing rates and switching the listing of a firm's stock to the NYSE. Using a sample of syndicated corporate loans, we find that firms switching from either NASDAQ or AMEX to NYSE experience a significant decrease in borrowing rates for revolving loans and pay lower commitment fees for the unused portion of these lines. The results are robust when using a propensity score matching technique to identify non-switching firms that match switching firms along an array of loan and firm specific characteristics. The empirical findings in this paper have implications for the global markets, given the continued consolidation of international equity exchanges.