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 language | English |
|---|---|
| Pages (from-to) | 289-295 |
| Number of pages | 7 |
| Journal | Applied Financial Economics |
| Volume | 4 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 1 Aug 1994 |
| Externally published | Yes |