Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/323463 
Year of Publication: 
2024
Citation: 
[Journal:] Journal of Business Economics [ISSN:] 1861-8928 [Volume:] 95 [Issue:] 2 [Publisher:] Springer Berlin Heidelberg [Place:] Berlin/Heidelberg [Year:] 2024 [Pages:] 333-384
Publisher: 
Springer Berlin Heidelberg, Berlin/Heidelberg
Abstract: 
Abstract This replication study assesses the long-term effects of MiFID II’s research unbundling rules on investment research provision and stock market quality. We extend existing studies by utilizing a post-event period exceeding five years, by regional differentiation within Europe, and by incorporating the new option to rebundle payments for order execution and research services for SMEs. In line with existing studies, we find a decrease in analyst coverage after MiFID II, particularly for large caps, while SMEs remain unaffected. These findings are consistent across different European regions but not for the United Kingdom. Market quality experiences a decline, with lower trading volume and increased volatility, offset by liquidity improvements for larger firms. After the introduction of rebundling, which has not been analyzed by existing studies, SME research coverage declines, suggesting that investment firms are not utilizing this option. Our findings offer insights for evidence-based policy-making as regulatory discussions on research unbundling persist in different jurisdictions.
Subjects: 
Research unbundling
Analyst reports
Information efficiency
Stock market quality
Persistent Identifier of the first edition: 
Additional Information: 
G10;G14;G15
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.