Purpose: The research interest in this paper is primarily in the question of how important changes in corporate-level strategy affect firm performance. This paper aims to explore the relationship between strategic change and performance, illustrate the frequency patterns of major strategic...

We examine market reactions to changes in the FTSE SmallCap index membership, which are determined quarterly based on market capitalization and are free of information effects. Our main results are asymmetric price and liquidity responses between the firms that are shifted between FTSE indexes...