Small- and medium-size enterprises (SMEs) play a fundamental role in the economic performance of major economies especially in the light of the new Basel Capital Accord. Several lending communities proposed to treat SMEs as retail clients to optimize capital requirements and profitability. In...

This article explores liquidity effects following CAC40 index revisions over the time period 1997 to 2001. We find evidence of a sustained increase (decrease) in the liquidity of the added (deleted) stocks. Furthermore, the improvement (reduction) in the liquidity of the stocks is due to a...