Harris, Jeffrey H.; Panchapagesan, Venkatesh; Werner, Ingrid - Charles A. Dice Center for Research in Financial … - 2008
We examine 1,098 Nasdaq firms delisted in 1999-2002 that subsequently traded in the OTC Bulletin Board and/or the Pink Sheets. Market quality deteriorates significantly after delisting: share volume declines by two-thirds; quoted spreads almost triple from 12.1 to 33.9 percent; and effective...