The Listing and Delisting of German Firms on NYSE and NASDAQ: Were There Any Benefits?

Bessler, Wolfgang; Kaen, Fred R.; Kurmann, Philipp; Zimmermann, Jan

doi:10.2139/ssrn.1928784

Cited by 13 publications

(7 citation statements)

References 13 publications

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“…In fact, firms face different trade-offs in their delisting decision depending on the type of voluntary delisting and whether or not they will continue trading afterwards (Bessler, Kaen, & Kurmann, 2012;Chaplinsky & Ramchand, 2012).…”

Section: Literature Review Voluntary Delistingmentioning

confidence: 99%

Delisting in Athens Stock Exchange

Yiannoulis¹

2019

JMAA

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The scope of this paper is to contribute to the question of delisting (both voluntary and involuntary), with particular emphasis on the initial conditions leading up to the Initial Public Offering (IPO) of the firms. The case of Athens Stock Exchange (ASE) is examined, specifically the IPOs of years 1996-2004 and their subsequent performance (delisting or not) till the end of 2017. We find that the probability of delisting is positively associated with the size of the issuance and the degree of earnings' manipulation and negatively associated with audit quality, information transparency, and market timing. The effects of audit quality, size of issuance, and earnings' manipulation are accentuated in instances of voluntary delisting while the effect of market timing is more clearly pronounced in instances of involuntary delisting. Our results are robust to a number of confounding factors including size, profitability, leverage, liquidity, growth options, and corporate governance. Our work is not replication of existing studies; in addition, we choose ASE as in that capital market there were many delistings the last two decades.

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Section: Literature Review Voluntary Delistingmentioning

confidence: 99%

Delisting in Athens Stock Exchange

Yiannoulis¹

2019

JMAA

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“…The United States has its legal origin in common law, with investor protection being among the best in the world (Berk & DeMarzo, 2006). In the same vein, Bessler, Kaen, Kurmann & Zimmermann (2012) emphasize that, in the US, the corporate and legal governance system is superior, protects minority shareholders, ensures transparency of financial reporting, and reduces managers' ability to derive private benefits.…”

Section: Conclusion and Contributions Of The Studymentioning

confidence: 99%

Estrutura de controle e performance financeira: Uma análise de empresas brasileiras listadas e deslistadas, negociadas no Brasil e nos Estados Unidos

Granzotto

Sonza

2019

Braz. Rev. Fin.

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The present work sought to identify the influence of the control structure on the accounting and market performance of listed and delisted Brazilian companies traded only on B3 as compared to those with a double listing with the US (ADRs). For this purpose, linear regressions were applied by GMM-Sys with unbalanced panel data. It was evidenced that for companies traded only on B3, the control structure is negatively related to efficiency while listed and positively related when delisting occurs, prevailing shareholder conflict. This context is inverse to that found in the analysis of ADRs, where the control structure is positively related to efficiency while listed and negatively related when delisting occur, proving that, in this case, agency conflicts prevail. This study confirms that the effects of US Commom Law also affect Brazilian companies that are traded in the US.

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“…In addition, while the cost and complexity of complying with US capital market regulations increased after the application of SOX, foreign firms' domestic markets developed and improved their governance over time, narrowing the competitive gap between the markets. Bessler et al (2012) highlight that the introduction of SOX in the USA, combined with improvement in German corporate governance laws and the emergence of alternative trading platforms, are the main reasons for German firms' delisting from the US markets. Gao et al (2013) and Doidge et al (2015) challenge the 'SOX cost hypothesis' as an explanation for the falling number of US IPOs.…”

Section: Compliance Versus Non-compliancementioning

confidence: 99%

“…Bessler et al . () highlight that the introduction of SOX in the USA, combined with improvement in German corporate governance laws and the emergence of alternative trading platforms, are the main reasons for German firms’ delisting from the US markets.…”

Section: Reasons For Voluntary Delistingmentioning

confidence: 99%

Reasons for Delisting and Consequences: A Literature Review and Research Agenda

Martínez

Serve

2016

Journal of Economic Surveys

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This paper discusses the literature on delisting, drawing on USA and international evidence. Given the great heterogeneity in delisting operations, we first consider the standard existing typology based on the initiator of the delisting (the stock market authorities, or the firm itself). Second, while managers often cite high compliance costs (especially due to Sarbanes–Oxley Act implementation) as the official reason for the voluntary delisting of their firm, we highlight that firms face different trade‐offs in their delisting decision. We also examine the reasons for involuntary delisting, especially the delisting dilemma faced by stock market authorities when the firm violates the listing requirements. Next, we review the economic consequences of delisting in terms of value creation or value destruction for shareholders. Finally, noting gaps in the literature and other contrasting results, we propose suggestions for future research.

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The Listing and Delisting of German Firms on NYSE and NASDAQ: Were There Any Benefits?

Cited by 13 publications

References 13 publications

Delisting in Athens Stock Exchange

Delisting in Athens Stock Exchange

Estrutura de controle e performance financeira: Uma análise de empresas brasileiras listadas e deslistadas, negociadas no Brasil e nos Estados Unidos

Reasons for Delisting and Consequences: A Literature Review and Research Agenda

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