@techreport{Serifsoy2005Demutualization,
abstract = {Academic contributions on the demutualization of stock exchanges so far have been
predominantly devoted to social welfare issues, whereas there is scarce empirical
literature referring to the impact of a governance change on the exchange itself.
While there is consensus that the case for demutualization is predominantly driven
by the need to improve the exchange's competitiveness in a changing business
environment, it remains unclear how different governance regimes actually affect
stock exchange performance. Some authors propose that a public listing is the best
suited governance arrangement to improve an exchange's competitiveness. By
employing a panel data set of 28 stock exchanges for the years 1999-2003 we seek to
shed light on this topic by comparing the efficiency and productivity of exchanges
with differing governance arrangements. For this purpose we calculate in a first step
individual efficiency and productivity values via DEA. In a second step we regress
the derived values against variables that - amongst others - map the institutional
arrangement of the exchanges in order to determine efficiency and productivity
differences between (1) mutuals (2) demutualized but customer-owned exchanges
and (3) publicly listed and thus at least partly outsider-owned exchanges. We find
evidence that demutualized exchanges exhibit higher technical efficiency than
mutuals. However, they perform relatively poor as far as productivity growth is
concerned. Furthermore, we find no evidence that publicly listed exchanges possess
higher efficiency and productivity values than demutualized exchanges with a
customer-dominated structure. We conclude that the merits of outside ownership lie
possibly in other areas such as solving conflicts of interest between too heterogeneous
members.},
author = {Baris Serifsoy},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {F39; G32; C23; C61; C24; 330; exchanges; demutualization; effciency; DEA; Malmquist-Productivity; Tobit panel data regressions; bootstrapping; Wertpapierb\"{o}rse; Umwandlung; Eigent\"{u}merstruktur; Wirtschaftliche Effizienz; Sch\"{a}tzung; Welt},
language = {eng},
number = {157},
title = {Demutualization, Outsider Ownership and Stock Exchange Performance - Empirical Evidence},
type = {Working paper series / Johann-Wolfgang-Goethe-Universit\"{a}t Frankfurt am Main, Fachbereich Wirtschaftswissenschaften : Finance & Accounting},
url = {http://hdl.handle.net/10419/23422},
year = {2005}
}
