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The Decision to Delist: International Empirical Evidence

  • Barbara Fidanza
Chapter

Abstract

This chapter reviews the empirical literature. There are essentially three streams of empirical literature on delisting. The first one studies, in voluntary delisting, the link between the decision to undertake the operation and the determinants in accordance with the different theoretical models. The other two literature streams highlight the reasons that lead to involuntary delisting and study the effects of delisting on firm value. Except for company size, ex-ante performance and company age, other variables do not show clear-cut results. Small firms, firms with poor ex-ante performance, and young firms are more likely to go private. In terms of value effect, voluntary delisting increases shareholders’ wealth, whereas involuntary delisting leads to value destruction.

Keywords

Voluntary delisting Involuntary delisting Cumulative abnormal returns Leverage Growth opportunities Company size Company age Performance Shareholders’ wealth Corporate governance 

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Barbara Fidanza
    • 1
  1. 1.Department of LawUniversity of MacerataMacerataItaly

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