Abstract
The second Markets in Financial Instruments Directive (MiFID II) mandated the unbundling of payments for research and trading. This research explores whether the impact of MiFID II differs between large and small firms in terms of analyst coverage and stock liquidity. Focusing on the UK stock markets we find a significant drop in analyst coverage on the Main Market, which leads to a deterioration in market liquidity. In contrast, the requirement of AIM firms to retain a Nominated Adviser, who often provides research coverage, has mitigated the impact of MiFID II.
Original language | English |
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Pages (from-to) | 1759-1786 |
Journal | European Financial Management |
Volume | 30 |
Issue number | 4 |
Early online date | 9 Oct 2023 |
DOIs | |
Publication status | Published - 30 Sept 2024 |
Data Availability Statement
The data that support the findings will be available in Refinitiv Database following an embargo from the date of publication to allow for commercialization of research findings. Data subject to third‐party restrictions. The data that support the findings of this study are available fromRefinitiv.com. Restrictions apply to the availability of these data, which were used under license for this study. Data are available at www.refinitiv.com with the permission of RefinitivKeywords
- MiFID II
- analyst coverage
- stock liquidity
- unbundling
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
- Accounting