The shareholder wealth effects of voluntary foreign delistings: an empirical analysis
This 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.
Year of publication: |
2005
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Authors: | Liu, Shinhua ; Stowe, John D. |
Published in: |
Applied Financial Economics Letters. - Taylor and Francis Journals, ISSN 1744-6546. - Vol. 1.2005, 4, p. 199-204
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Publisher: |
Taylor and Francis Journals |
Saved in:
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