The Impact of Migration Announcement on share Prices of the Firms that Migrate from Altx to the JSE Main Board, South Africa

This paper uses an event study methodology to empirically examine the impact of migration announcements on the share prices of the firms that migrate from the Alternative Exchange (AltX) to the Johannesburg Stock Exchange (JSE) main board. The employed dataset consists of daily closing share prices and dividends of the sample firms over seven years. Significant abnormal returns were observed three weeks before the migration announcement. Moreover, the significant average abnormal returns observed two days after the migration announcement suggest that the market is not information-efficient.