The shareholder wealth effects of voluntary foreign delistings: an empirical analysis
AbstractThis study investigates the shareholder wealth effects of voluntary foreign delistings for the first time using a sample of US firms delisted voluntarily from Japan. Using conventional event study methodology, no significant price changes are found following the delisting events, consistent with the voluntary nature of the delistings and the public information nature of the delisting reasons cited, i.e., small number of shareholders and low trading volume for the dually-listed stocks in the host market. Nonetheless, stock prices, on average, do seem to drop gradually over time, in line with possible liquidation of the to-be-delisted stocks around the events.
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Bibliographic InfoArticle provided by Taylor and Francis Journals in its journal Applied Financial Economics Letters.
Volume (Year): 1 (2005)
Issue (Month): 4 (July)
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Web page: http://www.tandfonline.com/RAFL20
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- You, Leyuan & Parhizgari, Ali M. & Srivastava, Suresh, 2012. "Cross-listing and subsequent delisting in foreign markets," Journal of Empirical Finance, Elsevier, vol. 19(2), pages 200-216.
- Liu, Shinhua, 2008. "Commission deregulation and performance of securities firms: Further evidence from Japan," Journal of Economics and Business, Elsevier, vol. 60(4), pages 355-368.
- Doidge, Craig & Karolyi, G. Andrew & Stulz, Rene M., 2009.
"Why Do Foreign Firms Leave U.S. Equity Markets?,"
Working Paper Series
2009-3, Ohio State University, Charles A. Dice Center for Research in Financial Economics.
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