Urszula Mrzygłod,

University of Gdansk, Poland

ekoum@ug.edu.pl

Sabina Nowak,

University of Gdansk, Poland

snowak@wzr.ug.edu.pl

Stock Exchanges go Public. The Case of Warsaw Stock Exchange

Received:

September, 2013

1st Revision:

October, 2013

Accepted:

November, 2013

DOI:

10.14254/2071-

8330.2013/6-2/10

Abstract. Over the last twenty years the competition pressure affected the ownership structure of stock exchanges. Demutualization is a worldwide phenomenon which changed the traditionally member-owned stock exchanges into corporations often listed on their own markets. The purpose of this study is to assess the financial market reaction on the Initial Public Offer (IPO) of the Warsaw Stock Exchange. We perform the analysis of the WIG20 index based on the event study methodology. The obtained results confirm that market participants anticipated the undertaken action. The study helps to shed some light on the demutualization process of stock exchanges that take place in the transition countries.

Keywords: demutualization, Warsaw Stock Exchange, financial markets.

JEL classification: G14, G15, G23,G32.