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

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  • Liu, Shinhua
  • Stowe, John D.
  • Hung, Ken

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.

Suggested Citation

  • Liu, Shinhua & Stowe, John D. & Hung, Ken, 2012. "Why U.S. firms delist from the Tokyo stock exchange: An empirical analysis," International Review of Economics & Finance, Elsevier, vol. 24(C), pages 62-70.
    • Handle: RePEc:eee:reveco:v:24:y:2012:i:c:p:62-70
    DOI: 10.1016/j.iref.2011.12.001
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    Cited by:

    1. Li, Mingsheng & Liu, Karen & Zhu, Xiaorui, 2024. "The effects of NASDAQ delisting on firm performance," Research in International Business and Finance, Elsevier, vol. 67(PB).
    2. Kashefi Pour, Eilnaz & Lasfer, Meziane, 2013. "Why do companies delist voluntarily from the stock market?," Journal of Banking & Finance, Elsevier, vol. 37(12), pages 4850-4860.

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    More about this item

    Keywords

    Reasons; Voluntary foreign listings; Tokyo Stock Exchange; U.S. firms;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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