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Foreign Delisting and Domestic Stock Value: Multiple Frameworks, Different Views?

Research output: Contribution to book/anthology/report/proceedingBook chapterResearch

  • Department of Business Studies
  • Information Systems Research Group
The aim of our paper is to understand the foreign delisting phenomenon using a multi-method approach based on both information content analysis and event study analysis of foreign companies withdrawing their stocks from the Tokyo Stock Exchange. Our objective is to measure the impact of the delisting decision on the domestic stock price by observing the link between the pure value impact and the reasons for delisting. Our results show that, contrary to previous results, firms delisting from Tokyo can gain value depending on the reaction of the market operators to the content of the information provided in the delisting announcements. i.e. delisting can be presented either as the result of the not fulfilment of the benefits of cross-listing or as a part of a more general strategy of the company. Highlighting significant clusters, content analysis provides a valuable addition to traditional event study and useful guidance in understanding the delisting phenomena.
Original languageEnglish
Title of host publicationEnterprise Applications and Services in the Finance Industry : 3rd International Workshop, FinanceCom 2007, Montreal, Canada, December 8, 2007. Revised Papers
EditorsDaniel J. Veit, Dennis Kundisch, Tim Weitzel, Christof Weinhardt, Fethi A. Rabhi, Federico Rajola
Place of publicationBerlin
PublisherSpringer
Publication year2008
Pages112-135
ISBN (print)978-3-540-78549-1
ISBN (Electronic)978-3-540-78550-7
DOIs
Publication statusPublished - 2008
SeriesLecture Notes in Business Information Processing
Volume4
ISSN1865-1348

    Research areas

  • Delisting, Event Study, stock returns, news announcements, Multi method approach

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