Post-Operating Performance of Cross-Delisted Firms From U.S. Stock Exchanges

Gilberto Loureiro () and Sónia Silva ()
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Gilberto Loureiro: Universidade do Minho - NIPE, http://www.eeg.uminho.pt
Sónia Silva: Universidade do Minho, http://www.eeg.uminho.pt

No 17/2015, NIPE Working Papers from NIPE - Universidade do Minho

Abstract: We investigate the long-term performance of cross-delisted firms from U.S. stock markets. Using a sample of foreign firms listed and delisted from U.S. stock exchange markets over 2000-2012, we examine the operating performance and the long-run stock returns performance of firms post-cross-delisting. Our results suggest that cross-delisted firms have less growth opportunities than matched cross-listed firms in the long run. Moreover, firms that cross-delist after the passage of Rule 12h-6 of 2007 exhibit a significant decline in operating performance. In contrast, before the adoption of the Rule 12h-6, cross-delisted firms seem to be affected by the cost of a U.S. listing in the precross-delisting period. In addition, we provide evidence that cross-delisted firms underperform their cross-listed peers; cross-delisted firms experience negative average abnormal returns, especially in the post-delisting period. Classification-JEL: F30; F31; G15; G30

Keywords: Cross-Delisting; Long-run Stock Returns; Post-Operating Performance (search for similar items in EconPapers)
Date: 2015
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