the volatility, CGCS and DP variables. The volatility contributes negatively to the
classification of the two groups. Hence, according to this empirical investigation,
the ADEX board has chosen firms with low volatilities in the derivatives listing.
According to the sign of the CGCS, we conclude that shareholder-friendly (democracies)
firms are better candidates for derivatives listing, than manager-friendly (dictatorships)
firms in some cases. Furthermore, the default probability has a marginal effect in the
derivatives listing process, a fact that is explained by the prevalence of the short run
objectives that the ADEX has been interested in. In order to strengthen the reliability of
the results we have contacted, for each phase of the derivatives listing process, an
analysis of the individual and the joint contribution of the independent variables, as
shown in the corresponding tables of the Appendix.
Finally, we propose an alternative methodology according to which we execute
daily logit regressions for every phase using a rolling window approach. From these
results we conclude with daily estimates of the logit regression coefficients and their
corresponding observed levels of statistical significance. In Figures 2-6 we show the