SwitchfromOTCtotheExchangeAlleviateaFirmsExtent.docVIP

Does the Switch from OTC to the Exchange Alleviate a Firm’s Extent of Financial Constraints – A Case of Taiwan Stock Market Chau-Chen Yang National Taiwan University Cheng-Few Lee Rutgers University Yanxiang Gu State University of New York(Geneseo) Yu-Jiun Chen National Taiwan University This paper aims to answer the question: “ Does the transferring from OTC to the Exchange alleviate a firm’s extent of financial constraints?” Previous paper by Baker et al. (1999) indicate that switching from OTC to an Exchange or from a small exchange to a larger exchange will enhance a firm’s vi