The Shareholder Wealth Effects of Voluntary Foreign Delistings

Download or read book The Shareholder Wealth Effects of Voluntary Foreign Delistings written by Shinhua Liu and published by . This book was released on 2012 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the shareholder wealth effects of voluntary foreign delistings for the first time using a sample of U.S. firms delisted voluntarily from Japan. Using conventional event study methodology, we find no significant price changes 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.