This work presents an empirical analysis of delisting effects on shareholder wealth in a sample of firms delisted from European stock exchanges. The analysis was conducted at two levels. In the first one, through an event study, it is studied the effect on common stock price of delisting, on announcement day and around it. At second level it is tested if the delisting improved the operating performance in years post-delisting. The results confirm the main international evidence. The delisting causes the stock price rise in the pre-announcement period and in the few days around the announcement. The leverage and size of the firm are determinants of these effects. Conversely, prices declined in the post-announcement period. The operating performance in the year after delisting does not change a lot concerning to the year before the delisting, but the size is always a determinant.

Common stock delistings: an empirical analysis of firms performance

B. Fidanza
2022

Abstract

This work presents an empirical analysis of delisting effects on shareholder wealth in a sample of firms delisted from European stock exchanges. The analysis was conducted at two levels. In the first one, through an event study, it is studied the effect on common stock price of delisting, on announcement day and around it. At second level it is tested if the delisting improved the operating performance in years post-delisting. The results confirm the main international evidence. The delisting causes the stock price rise in the pre-announcement period and in the few days around the announcement. The leverage and size of the firm are determinants of these effects. Conversely, prices declined in the post-announcement period. The operating performance in the year after delisting does not change a lot concerning to the year before the delisting, but the size is always a determinant.
Canadian Center of Science and Education (CCSE)
Internazionale
File in questo prodotto:
File Dimensione Formato  
FIDANZA_IRIS.pdf

solo utenti autorizzati

Tipologia: Documento in post-print (versione successiva alla peer review e accettata per la pubblicazione)
Dimensione 512.14 kB
Formato Adobe PDF
512.14 kB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11393/297107
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact