Why U.S. firms delist from the Tokyo stock exchange: An empirical analysis

Shinhua Liu, John Stowe and Ken Hung

International Review of Economics & Finance, 2012, vol. 24, issue C, 62-70

Abstract: We investigate possible reasons for voluntary delistings by U.S. firms from the Tokyo Stock Exchange from 1982 to 2005. We find that the small shareholder base, as measured by low turnover, for U.S. stocks in Japan helps to explain the voluntary foreign delistings. This finding is consistent, from the converse, with the foreign listing literature, which cites enhanced shareholder base and liquidity as two of the reasons for foreign listing. Further investigations rule out the sample firms' financial and operating performances, including the percentage of export sales, as a likely reason for the low turnover and, thus, the voluntary foreign delistings.

Keywords: Reasons; Voluntary foreign listings; Tokyo Stock Exchange; U.S. firms (search for similar items in EconPapers)
JEL-codes: G12 G14 G15 G18 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:24:y:2012:i:c:p:62-70

DOI: 10.1016/j.iref.2011.12.001

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