Share price behaviour around trading suspensions on the London Stock Exchange

Rezaul Kabir*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

5 Citations (Scopus)

Abstract

The share price behaviour associated with a sample of trading suspensions on the London Stock Exchange is analysed. Trading suspensions are found to be prevalent, and last for a relatively long time period. The results indicate that suspensions on the London Stock Exchange are, on average, preceded by a substantial increase in share price, thus reflecting anticipatory price-behaviour. The presence of significant positive abnormal return following trading suspensions is also detected. This suggests that either the complete impact of information release takes place gradually, or not all relevant information is disclosed during the suspension period.

Original languageEnglish
Pages (from-to)289-295
Number of pages7
JournalApplied Financial Economics
Volume4
Issue number4
DOIs
Publication statusPublished - 1 Aug 1994
Externally publishedYes

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