Does NYSE Listing Affect Firm Visibility?

Corporate managers often cite improved visibility as a motive for listing. Recent studies suggest that firms list after a period of strong growth, which may also attract increased visibility. This study examines listing as a determinant of firm visibility levels. We compare visibility changes for a large sample of firms that listed on the NYSE to a matched sample of firms remaining on Nasdaq. The evidence shows that NYSE listing leads to visibility gains when measured by the number of analysts following a firm as well as institutional ownership. However, additional tests show that the gains in visibility are not due to listing but instead appear to be related to pre-listing financial performance