The timing of voluntary delisting

Azevedo, Alcino, Colak, Gonul, El Kalak, Izidin ORCID: https://orcid.org/0000-0002-2992-4042 and Tunaru, Radu 2024. The timing of voluntary delisting. Journal of Financial Economics 155 , 103832. 10.1016/j.jfineco.2024.103832

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Abstract

For many firms, voluntarily delisting from a stock exchange can be optimal. We model an en- trepreneur’s incentives to voluntarily delist the firm as a trade-off between consumption of private benefits when listed and expected improvements in the firm’s performance after delisting. Our model allows for heterogeneity across firms and countries, and various micro and macro shocks affect the delisting decision. Such a model makes novel predictions regarding the delisting patterns around the world. We empirically confirm these predictions using manually collected delisting data from 26 countries. Increasing policy and regulatory uncertainties can partially explain the greater popularity of voluntary delistings.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Subjects:	H Social Sciences > HG Finance
Publisher:	Elsevier
ISSN:	0304-405X
Date of First Compliant Deposit:	20 March 2024
Date of Acceptance:	13 March 2024
Last Modified:	08 Apr 2024 10:07
URI:	https://orca.cardiff.ac.uk/id/eprint/167270

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