Discussion: An Analysis of the Effects of a Multi-Tiered Stock Market

Abstract

It is important to investigate the characteristics of firms in differing size categories (tiers) in order to document any size-related differences that may exist among these firms. Such investigations may lead to improvements in asset-pricing models as empiricists test the impacts of these differences on the actual pricing of securities. Reilly and Drzycimski (R & D) have provided evidence that a number of such differences exist: volatility, debt ratios, and trading volume appear not to be homogeneously distributed across firm size categories nor across time, but there are some difficulties with the paper that need airing.