Purpose – The purpose of this paper is to contribute to a better understanding of the impact of market liquidity on the daily tracking error of exchange-traded funds (ETFs). It puts a special focus on the liquidity cost of individual underlying stocks as well as the process of...

This paper is focused on the cost of raising equity capital in Switzerland. In the spirit of the papers of Altinkilic and Hansen (2000) and Buehner and Kaserer (2002) we analyze the structure of the flotation cost function for listed firms in Switzerland. For a sample of 45 SEOs on the Swiss...