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Journal articles on the topic 'Delisted firms'
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Kusumawati, Maharani Dhian. "MANIPULASI LABA SEBELUM DELISTING." Jurnal Riset Akuntansi dan Keuangan 9, no. 1 (February 1, 2013): 35. http://dx.doi.org/10.21460/jrak.2013.91.19.
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This study aims to test earnings manipulation by the firm prior delist from the stock exchange in Indonesia, Malaysia, Singapore, and Thailand. Manipulation of earnings used is accrual earnings management and calculate using discretionary accruals. The study found that forced delisted firms and voluntary delisted firms manipulate earnings by income decreasing. Income decreasing in forced delisted firms higher than income decreasing in voluntary delisted firms. Keywords: earnings management¸ delisting, forced delisted, voluntary delisted
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Kang, Sun Min. "Voluntary Delisting In Korea: Causes And Impact On Company Performance." Journal of Applied Business Research (JABR) 33, no. 2 (March 1, 2017): 391–408. http://dx.doi.org/10.19030/jabr.v33i2.9912.
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This research investigates the attributes of firms that choose to voluntarily delist in Korea, including the evolution of firms after delisting, using performance indicators such as total assets, revenue, and net income. Empirical evidence suggests that the higher the shareholding ratio of the largest shareholder and the higher the growth prospects and liquidity, the greater the incentive for voluntary delisting. In addition, firms in non-high-tech industries choose to delist more often than those in high-tech industries. Further, firms that have delisted show lower total assets, revenues, and net incomes than listed firms, and these gaps increase over time.
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Park, Jinwoo, Kengo Shiroshita, Naili Sun, and Yun W. Park. "Involuntary delisting in the Japanese stock market." Managerial Finance 44, no. 9 (September 10, 2018): 1155–71. http://dx.doi.org/10.1108/mf-04-2017-0126.
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Purpose The purpose of this paper is to analyze the wealth effect of involuntary delisting and investigate insider opportunism and the role of corporate governance, liquidity and legal environment in involuntary delisting in Japan’s stock market. Design/methodology/approach The authors use a sample of 136 involuntarily delisted firms in Japan’s stock markets between 2002 and 2012. The authors examine ownership changes of inside shareholders prior to delisting and estimate regression models for the wealth effect of involuntary delisting. Findings Involuntary delisting is highly disruptive in Japan, and limited liquidity of delisted stocks appears to be an important cause. However, the ownership reduction of inside shareholders before delisting is limited, totaling 2–3 percent. For delisted firms with an insider bank, the decrease in share price leading up to a delisting announcement is much less, while the decrease in share price upon a delisting announcement is far greater. Originality/value The study investigates involuntary delisting in regard to the opportunistic behavior of inside shareholders and the role of institutional environment in Japan’s stock market. Insiders, especially insider banks, maintain ownership in a distressful context leading to the forcible delisting of a distressed firm. The authors find some evidence that suggests that the market believes the insider bank will try to prevent the ailing firm’s insolvency. The findings are consistent with the implicit relational contracts that characterize Japanese firms.
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Eisdorfer, Assaf. "Delisted firms and momentum profits." Journal of Financial Markets 11, no. 2 (May 2008): 160–79. http://dx.doi.org/10.1016/j.finmar.2007.12.001.
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Hussain Khan, Muhammad Nadir, and Haji Suleman Ali. "Can DuPont Analysis Predict Voluntary Delisting from Stock Exchange? Evidence from Pakistan." Jinnah Business Review 7, no. 2 (July 1, 2019): 41–48. http://dx.doi.org/10.53369/ofjk7670.
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This study explores whether voluntary delisting of companies from stock exchanges can be predicted by the DuPont Model. ROE (Return on Equity), NPM (Net Profit Margin), ATO (Assets Turnover) and LM (Leverage Multiplier) of 13 voluntarily delisted firms from Karachi Stock Exchange were compared with same ratios of respective sectors for 6 years preceding the delistment year by applying t-test. Difference of means of DuPont ratios between voluntarily delisted firms and their respective sectors were not found statistically significant. Thus, ROE, NPM, ATO and LM, which are the measures of profitability, asset utilization (efficiency) and leverage respectively, are not the significant predictors of voluntary delisting decisions in Pakistan. To the best of researchers knowledge, this study is first attempt to differentiate between voluntarily delisted and listed companies on the basis of DuPont Model.
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Akinsomi, Omokolade, Katlego Kola, Thembelihle Ndlovu, and Millicent Motloung. "The performance of the Broad Based Black Economic Empowerment compliant listed property firms in South Africa." Journal of Property Investment & Finance 34, no. 1 (February 1, 2016): 3–26. http://dx.doi.org/10.1108/jpif-09-2014-0061.
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Purpose – The purpose of this paper is to examine the impact of Broad-Based Black Economic Empowerment (BBBEE) on the risk and returns of listed and delisted property firms on the Johannesburg Stock Exchange (JSE). The study was investigated to understand the impact of Black Economic Empowerment (BEE) property sector charter and effect of government intervention on property listed markets. Design/methodology/approach – The study examines the performance trends of the listed and delisted property firms on the JSE from January 2006 to January 2012. The data were obtained from McGregor BFA database to compute the risk and return measures of the listed and delisted property firms. The study employs a capital asset pricing model (CAPM) to derive the alpha (outperformance) and beta (risk) to examine the trend amongst the BEE and non-BEE firms, Sharpe ratio was also employed as a measurement of performance. A comparative study is employed to analyse the risks and returns between listed property firms that are BEE compliant and BEE non-compliant. Findings – Results show that there exists differences in returns and risk between BEE-compliant firms and non-BEE-compliant firms. The study shows that BEE-compliant firms have higher returns than non-BEE firms and are less risky than non-BEE firms. By establishing this relationship, this possibly affects the investor’s decision to invest in BEE firms rather than non-BBBEE firms. This study can also assist the government in strategically adjusting the policy. Research limitations/implications – This study employs a CAPM which is a single-factor model. Further study could employ a multi-factor model. Practical implications – The results of this investigation, with the effects of BEE on returns, using annualized returns, the Sharpe ratio and alpha (outperformance), results show that BEE firms perform better than non-BEE firms. These results pose several implications for investors particularly when structuring their portfolios, further study would need to examine the role of BEE on stock returns in line with other factors that affect stock returns. The results in this study have several implications for government agencies, there may be the need to monitor the effect of the BEE policies on firm returns and re-calibrate policies accordingly. Originality/value – This study investigates the performance of listed property firms on the JSE which are BEE compliant. This is the first study to investigate listed property firms which are BEE compliant.
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Djerbi, Chiraz, and Jarboui Anis. "Boards, retained ownership and failure risk of French IPO firms." Corporate Governance 15, no. 1 (February 2, 2015): 108–21. http://dx.doi.org/10.1108/cg-10-2013-0115.
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Purpose – This paper aims to investigate the relationship between corporate governance structures of French initial public offering (IPO) firms and the likelihood of failure and involuntary delisting from the stock exchange in the long run. Design/methodology/approach – A matched-pairs research design was used and 36 delisted IPO firms were compared to an equal number of control IPO firms matched in terms of time, size and industry. Conditional logistic regression analyses were performed, and it was found that corporate governance structures in delisted IPO firms were relatively weak compared to control IPO firms. Findings – A significant negative association was found between the likelihood of exchange delisting and the proportion of independent directors. A positive and significant relationship was also found between the likelihood of exchange delisting on the one hand and the chief executive officer/Chair role duality and the retained ownership by insiders after the IPO on the other hand. However, no relationship was detected between IPO failure risk and board size at the IPO time. Originality/value – Retained ownership and failure risk of French IPO firms.
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Chien, Chu-Yang, Yuh-Jiuan Parng, and Chen-Wei Lu. "Corporate board, ownership structure and the involuntary delisted firms." Corporate Ownership and Control 6, no. 4 (2009): 370–81. http://dx.doi.org/10.22495/cocv6i4c3p3.
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The Financial Supervisory Commission in Taiwan has advocated the importance of corporate governance for several years. The purpose of this study is to act in concern with the policy through the test of the relationship between the corporate governance mechanism, especially Board of Directors’ composition and ownership structure, and the involuntary delisted firms. The study extracts 58 involuntary delisted firms from Taiwan Securities Exchange (TSE) during 1997 to 2007 and matches with 112 similar control firms. The results from probit regression suggest that Board of Directors (BOD) with more number of outside independent directors, larger board size, lower ratio of shares pledged to the total shares, higher seats over control right, and lower control right over right for cash flow may reduce the likelihood of delisting. The study could become monitoring indices for internal examination system, the warning signals for investors, and the reference for the policy makers
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Mun, Sung Gyun, and SooCheong (Shawn) Jang. "Restaurant firms’ IPO motivations and post-IPO performances." International Journal of Contemporary Hospitality Management 31, no. 9 (September 9, 2019): 3484–502. http://dx.doi.org/10.1108/ijchm-08-2018-0677.
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Purpose This study aims to identify why restaurant firms go public (IPO) despite high financing costs and which factors make firms stay public for the long term after an IPO. Also, this study aimed to link and compare restaurant firms’ pre- and post-IPO accounting information and how IPO proceeds were used. Design/methodology/approach This study used random-effects regression analysis with a number of dependent variables for a sample of 1,347 unbalanced panel data. In addition, logistic regression analyses were used to identify why restaurant firms were delisted within short periods after going public. Findings First, rebalancing financial structures was the most important reason for IPOs, whereas financing future growth was only a minor motivation. Second, post-IPO performance significantly differed between restaurant firms based on their pre-IPO financial conditions, as well as how they used IPO proceeds. Third, restaurant firms with low profitability, inefficient non-operating expenses and difficulties in generating revenue increased their financial burdens, which ultimately caused restaurant firms to be delisted within a short period after an IPO. Furthermore, the reasons for merging included cash shortages, large short-term liabilities and increased major operating expenses, together with increases in capital expenditures. Originality/value This study is unique, in that it explains the relationships between motivations for going public and post-IPO performances by directly linking the usages of IPO proceeds with firms’ operational performances. To the best of the authors’ knowledge, this study is the first to examine the effects of IPOs on restaurant firms’ operational, non-operational, investment and financial activities on firms’ performances.
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김연화. "Effects of auditor change in delisted firms on audit quality." Korea International Accounting Review ll, no. 57 (October 2014): 241–68. http://dx.doi.org/10.21073/kiar.2014..57.014.
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Huynh, Thanh D., and Daniel R. Smith. "Delisted stocks and momentum: Evidence from a new Australian dataset." Australian Journal of Management 42, no. 1 (June 22, 2016): 140–60. http://dx.doi.org/10.1177/0312896214565118.
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We explore the impact of delisting on the performance of the momentum trading strategy in Australia. We employ a new dataset of hand-collected delisting returns for all Australian stocks and provide the first study outside the U.S. to jointly examine the effects of delisting and missing returns on the magnitude of momentum profits. In the sample of all stocks, we find that the profitability of momentum strategies depends crucially on the returns of delisted stocks, especially on bankrupt firms. In the sample of large stocks, however, the momentum effect remains strong after controlling for the effect of delisted stocks, in contrast to the U.S. evidence in which delisting returns can explain 40% of momentum profits. As these large stocks are less exposed to liquidity risks, the momentum effect in Australia is even more puzzling than in the U.S.
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Bae Khee Su and 정설희. "An Empirical Study on the Prediction Model of the Delisted Firms." Tax Accounting Research ll, no. 30 (December 2011): 125–40. http://dx.doi.org/10.35349/tar.2011..30.007.
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Ahmad, Abd Halim. "What factors discriminate reorganized and delisted distressed firms: Evidence from Malaysia." Finance Research Letters 29 (June 2019): 50–56. http://dx.doi.org/10.1016/j.frl.2019.03.010.
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Thi Vu, Loan, Lien Thi Vu, Nga Thu Nguyen, Phuong Thi Thuy Do, and Dong Phuong Dao. "Feature selection methods and sampling techniques to financial distress prediction for Vietnamese listed companies." Investment Management and Financial Innovations 16, no. 1 (March 25, 2019): 276–90. http://dx.doi.org/10.21511/imfi.16(1).2019.22.
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The research is taken to integrate the effects of variable selection approaches, as well as sampling techniques, to the performance of a model to predict the financial distress for companies whose stocks are traded on securities exchanges of Vietnam. A firm is financially distressed when its stocks are delisted as requirement from Vietnam Stock Exchange because of making a loss in 3 consecutive years or having accumulated a loss greater than the company’s equity. There are 12 models, constructed differently in feature selection methods, sampling techniques, and classifiers. The feature selection methods are factor analysis and F-score selection, while 3 sets of data samples are chosen by choice-based method with different percentages of financially distressed firms. In terms of classifying technique, logistic regression together with SVM are used in these models. Data are collected from listed firms in Vietnam from 2009 to 2017 for 1, 2 and 3 years before the announcement of their delisting requirement. The experiment’s results highlight the outperformance of the SVM model with F-score selection method in a data sample containing the highest percentage of non-financially distressed firms.
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Dinh, Thao Thi Thu, and Khuong Vinh Nguyen. "The impact of earnings management on going concern: Evidence from listed firms in Vietnam." Science and Technology Development Journal 19, no. 3 (September 30, 2016): 96–108. http://dx.doi.org/10.32508/stdj.v19i3.499.
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This study is to provide an empirical evidence about the correlation relationship between earnings management and the respect of going-concern of companies listed on Vietnam stock markets. Using quantitative research methods on data obtained from 80 companies delisted on Vietnam stock markets (HNX and HOSE) in the period from 2012 to 2015, we find a correlation between earnings management and going concern of the company. The study is meaningful to investors, management organizations and auditors in expressing their opinion about the ability of the going concern and enhances the transparency of financial reporting information.
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Farooq, Umar, Muhammad Ali Jibran Qamar, and Abdul Haque. "A three-stage dynamic model of financial distress." Managerial Finance 44, no. 9 (September 10, 2018): 1101–16. http://dx.doi.org/10.1108/mf-07-2017-0244.
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Purpose The purpose of this paper is to explain the multi-stage dynamic process of financial distress. An attempt is made to explore multiple adverse heterogeneous events of financial distress leading a firm closer to bankruptcy progressively. Design/methodology/approach Sample comprises 321 ongoing, 54 suspended and 91 delisted non-financial firms from Pakistan Stock Exchange. Financial distress is segregated into three stages, i.e. profit reduction, mild liquidity (ML) and severe liquidity (SL). Flow diagrams are used to explain the transition of healthy firms through proposed stages of financial distress. Findings Results showed that firms liquidated/winding-up by court documented SL problems and closed their operations well before the delisting year. It is found that healthy firms are more likely to face SL when faced ML problem at first stage. Distressed firms can recover to a healthy position at any stage, however after approaching to SL, recovery is less expected. Practical implications The proposed process will provide a foundation for future studies to develop more relevant, robust and accurate early warning system of corporate failure that will help stakeholders to respond potential crisis accordingly and timely. Originality/value Previously, most of the studies used the ex post definition of bankruptcy that is criticized due to the contextual application, sample bias and non-segregation by the degree of liquidity problems. The originality of the proposed ex ante model is its segregation into a three-stage process that can be generalized regardless of specific bankruptcy law.
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Byun, Hae-Young. "The Timely Disclosure Behaviors of Delisted Companies: An Empirical Study of Korean Firms." Institute of Management and Economy Research 10, no. 4 (December 31, 2019): 1–30. http://dx.doi.org/10.32599/apjb.10.4.201912.1.
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Chhapra, Imran Umer, Iffat Zehra, Muhammmad Kashif, and Raja Rehan. "Is Bankruptcy Risk a Systematic Risk? Evidence from Pakistan Stock Exchange." ETIKONOMI 19, no. 1 (March 22, 2020): 51–62. http://dx.doi.org/10.15408/etk.v19i1.11248.
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This study empirically investigates the relationship between default risk and cross-section of stock returns in the Pakistan Stock Exchange (PSX). Stock price data from all listed and delisted companies use to calculate monthly returns from 2001-2016. Ohlson's O-score is employed to measure exposure of firm to systematic deviation within bankruptcy risk. Besides, asset-pricing models like the Capital Asset Pricing Model (CAPM) and Fama French (FF) models are employed. Portfolios are sorted in deciles by default probability. This result finds that stocks of firms significantly exposed to not diversified Default Risk yield higher returns. Besides that, the FF models explain cross-sectional stock returns since factors incorporate information on financial distress and default. After that, the book-to-market equity factor is not significant in elucidating returns of distressed firms because of market inefficiency. Results have practical implications for portfolio managers and investors of an emerging economy in developing diversified portfolios during periods of uncertainty and market volatility.JEL Classifications: G12, G15, G33How to Cite:Chhapra, I. U., Zehra, I., Kashif, M., & Rehan, R. (2020). Is Bankruptcy Risk a Systematic Risk? Evidence from Pakistan Stock Exchange. Etikonomi: Jurnal Ekonomi, 19(1), 51 – 62. https://doi.org/10.15408/etk.v19i1.11248.
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Tanui, Dr Peninah Jepkogei, Harrison Katana, Geoffrey Alosi, Lynda Khahenda, and Vincensia Emmanuel Adhiambo. "Ownership Structure and Financial Performance of Listed Firms in Kenya: Mediation Role of Corporate Diversification." Journal of Advanced Research in Economics and Administrative Sciences 2, no. 2 (April 29, 2021): 16–34. http://dx.doi.org/10.47631/jareas.v2i2.222.
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Purpose: The study aimed at examining the mediating role of corporate diversification between ownership structure and financial performance of listed firms in Kenya. Methodology/Approach/Design: As guided by explanatory research design, 65 listed firms from 2003 to 2017 were targeted. However, panel data of 35 firms were considered after excluding suspended and delisted as far as the study period is concerned. Results: The panel regression analysis finding indicated that corporate diversification positively and significantly mediated between institutional ownership and financial performance (β = .005, p-value = .000). Furthermore, there was a negative but statistically significant mediation effect of corporate diversification between foreign ownership and financial performance (β = -.0019, p-value = .023). These mediation effects existed despite the direct effect between institutional and as well foreign ownership and financial performance being statistically insignificant. Practical Implications: The study, therefore, suggested to the management of listed firms to ensure proper implementation of corporate diversification as it transmits the effect of ownership structure on financial performance. More importantly, policymakers are suggested to streamline taxation of foreign investors, tackle malpractices in the firm leading to embezzlement of investor funds. Future studies need to enlarge the scope to incorporate unlisted firms as well as firms listed in different stock exchanges in East Africa. Other types of ownership structure as managerial, family and state need to be analyzed. In addition, other forms and measures of corporate diversification could be investigated by future researchers. Originality/Value: To attain the main objective, the study used panel regression analysis and path diagrams to examine the effect of ownership structure on financial performance via corporate diversification.
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Grove, Hugh, and Maclyn Clouse. "Corporate governance standards in cross-border investing: lessons learned from Chinese companies listed in the United States." Corporate Ownership and Control 11, no. 3 (2014): 429–37. http://dx.doi.org/10.22495/cocv11i3conf2p4.
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This paper will examine five Chinese company stocks that have been listed on United States exchanges with either initial public offerings (IPOs) or reverse mergers, often called reverse take-overs (RTOs). Their shares were initially well received in the market, especially as China’s economy continued to grow at rates much higher than the rest of the world’s countries, with increasing stock prices creating significant gains for their investors. However, in spite of these firms’ apparent compliance to the U. S. regulations, there is now evidence of fraud, poor auditing, and a lack of corporate governance and control. The resultant stock price declines have led to billions of dollars of losses for investors, and some of these Chinese firms have subsequently been delisted by U. S. stock exchanges. In this paper, we will show that had auditors, boards of directors, and financial analysts been more diligent and responsible, these problems could have been identified earlier than they were. Perhaps some of the investors’ losses could have been prevented
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Li, Tao, Mi Luo, and David Ng. "Earnings management and listing regulations in China." China Finance Review International 4, no. 2 (May 13, 2014): 124–52. http://dx.doi.org/10.1108/cfri-02-2014-0005.
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Purpose – The purpose of this paper is to document earnings management of Chinese firms. Design/methodology/approach – The paper takes advantage of the introduction of stringent delisting requirements around 2000 that non-cross-listed firms with consecutive earnings losses for more than two years would be delisted from the mainland Chinese exchanges. The paper examines whether listed firms in Chinese market manage earnings to avoid listings. The paper also examines whether mainland Chinese firms cross-listed in Hong Kong exchanges manage earnings the same way. The measure for earnings management is derived from a kernel density estimate for the return on equity distribution, following Bollen and Pool (2009). Findings – The paper finds that the new delisting threats induce rampant earnings management on mainland markets, and cross-listing in Hong Kong has a curbing effect on earnings management. The paper also finds that prices became less value relevant after the implementation of delisting regulations, and investors rationally discounted the reliability of earnings announcements in China. Such market responses were absent for cross-listed firms in Hong Kong. Originality/value – There is little conclusive evidence about whether cross-listing in a non-US market has a curbing effect on earnings management. The paper contributes to this literature by using this unique exogenous policy change in China and following a difference-in-difference approach in identifying the potential curbing effect. The particular measure adapted from Bollen and Pool (2009) utilizes information of the whole distribution of return on equity, thus extends earlier crude comparison of nearest two bars around zero and partially deals with the potential endogeneity problem.
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Croci, Ettore, Eric Nowak, and Olaf Ehrhardt. "The corporate governance endgame – minority squeeze-out regulation and post-deal litigation in Germany." Managerial Finance 43, no. 1 (January 9, 2017): 95–123. http://dx.doi.org/10.1108/mf-01-2016-0032.
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Purpose The purpose of this paper is to examine minority squeeze-outs and their regulation in Germany, a country where majority shareholders have extensively used this tool since its introduction in 2002. Using unique hand-collected data, the authors carry out the first detailed analysis of the German squeeze-out offers from the announcement to the outcome of post-deal litigation, examining also the determinants of the decision to squeeze-out minority investors. Design/methodology/approach Using unique data on court rulings and compensations, the authors analyze a sample of 324 squeeze-outs of publicly listed companies from 2002 to 2011 to carry out the first detailed analysis of the squeeze-out procedure and the post-deal litigation. The authors employ the event study methodology to assess the stock market reaction around the announcement of the squeeze-out. Findings Large firms with foreign large shareholders are the most likely to be delisted. Positive stock price performance increases the likelihood of a squeeze-out, but operating performance has the opposite effect. Stock prices react positively to squeeze-out announcements, in particular when the squeeze-out does not follow a previous takeover offer. Post-deal litigation is widespread: nearly all squeeze-outs are legally challenged by minority shareholders. Additional cash compensation is larger in appraisal procedures, but actions of avoidance are completed in less time. Overall, the evidence suggests that starting post-deal litigation by challenging the cash compensation offered in a squeeze-out delivers high returns for minority investors. Research limitations/implications The lack of data concerning the identity of minority shareholders in firms undergoing a squeeze-out does not allow a proper investigation of the incentives of the different types of investors. Practical implications The paper provides evidence about the incentives of the different players in a squeeze-out offer. The findings of the paper could be helpful in assessing the impact of the squeeze-out rule. The results also contribute to the understanding of minority investors’ incentives to start post-deal litigation. Originality/value This paper provides new evidence about post-deal litigation, in particular how investors use the procedures that the system provides them to protect themselves against controlling shareholders. The paper examines all the phases of the squeeze-out procedure and challenges.
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Mola, Simona, P. Raghavendra Rau, and Ajay Khorana. "Is There Life after the Complete Loss of Analyst Coverage?" Accounting Review 88, no. 2 (October 1, 2012): 667–705. http://dx.doi.org/10.2308/accr-50330.
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ABSTRACT This paper examines the value of sell-side analysts to covered firms by documenting the effects on firm performance and investor interest after a complete loss of analyst coverage for periods of at least one year. We find that analyst coverage adds value to a firm both because it reduces information asymmetries about the firm's future performance and because it maintains investor recognition for that firm's stock. After the introduction of regulations that curtailed the informational advantage of analysts in the early 2000s, the investor recognition role of analysts remains important. Firms that lose all analyst coverage continue to suffer a significant deterioration in bid-ask spreads, trading volumes, and institutional presence but do not show a significant difference in subsequent performance relative to covered peers. In addition, controlling for other factors, we find that firms that lose all analyst coverage for one year are significantly more likely to delist than their covered peers. Our results provide insight into the reasons why firms place so much importance on analyst coverage.
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Abedana, Virgil Nbellah, Kwame B. Omane-Antwi, and Alexander Owiredu. "The Impact of IFRS/IAS Adoption on Corporate Income Taxation in Ghana." International Journal of Accounting and Financial Reporting 6, no. 1 (April 8, 2016): 72. http://dx.doi.org/10.5296/ijafr.v6i1.9070.
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Studies in a multiplicity of reporting jurisdictions worldwide have revealed considerable divergence in the impact of IFRS/IAS adoption on taxation. There is minimal empirical study on the tax impacts or effects of reporting entities following the transition from GNAS to IFRS by Ghanaian listed companies. The study therefore investigates the changes to corporate taxes, deferred tax and net tax assets (liabilities) using a sample of entities from the Ghana Stock Exchange over the period 2007 / 2006 to 2008 / 2007 which encompasses the move from GNAS to IFRS, particularly IAS 12.The research design was predominately quantitative in nature and cross-sectional in approach. The population for the study was all companies’ listed (42 companies) on the Ghana Stock Exchange (GSE) as at December 2015. The study used a sample of 22 listed entities after deducting invalid search results, companies that previously did not use GNAS as well as not using Ghana Cedis as their currencies, delisted entities since 2007 and free zone entities.The adoption of IFRS/IAS led to a few more listed companies paying less taxes and majority not having any changes in their tax burdens following the restatement of accounts from GNAS into IFRS/IAS. Overall, the paired sample t-test of GNAS and IFRS on reported tax amounts showed no differences between IFRS and GNAS computed amounts. Largely, 90.1% of firms observed did not report any changes to current tax assets. Whiles 94.5%, 86.4% and 59.1% of observations reported negative changes in deferred tax assets, current tax liabilities and deferred tax liabilities respectively. In terms of industry sectors, the manufacturing / trading industry saw a positive change of 13% in current year tax expenses burden whiles the financial / insurance / information technology industry reported a decrease of 13.3% in current year tax expenses liability.A further and in-depth longitudinal study could be done to study the trend of tax burdens as well as the pattern of effective tax rates of listed companies since the adoption of IFRS/IAS in Ghana since this one provide mixed impacts.
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Agyei-Boapeah, Henry, Yuan Wang, Abongeh A. Tunyi, Michael Machokoto, and Fan Zhang. "Intangible investments and voluntary delisting." International Journal of Accounting & Information Management 27, no. 2 (May 7, 2019): 224–43. http://dx.doi.org/10.1108/ijaim-12-2017-0146.
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Purpose Drawing on a cost–benefit perspective, this paper aims to explore the relation between information asymmetry and the decision to delist from stock exchanges during periods of uncertainty. Specifically, it investigates the role of firms’ intangible investments and the availability of alternative sources of finance on the decision to delist from foreign stock markets. Design/methodology/approach The study takes advantage of a natural experiment in which cross-listed Chinese firms facing uncertainty in US markets because of widespread allegations of accounting fraud decide on whether to remain listed or voluntarily delist. The decision to delist is modelled as a function of the level of information asymmetry between firms and their stakeholders and the availability of alternative financing, while controlling for other drivers of firms’ delisting decision. The data used in the empirical analyses cover a hand-collected sample of 91 Chinese firms voluntarily delisting from US stock markets between 2010 and 2016. This sample is matched with an equal sample of Chinese firms, which remained listed in US stock markets during the same period. A probit regression model accounting for fixed effects is used. Findings There is a significant positive relationship between investments in intangible assets and firms’ decision to delist. Moreover, the positive intangibles−delisting nexus is accentuated by the availability of alternative sources of financing. Collectively, the results are consistent with the theoretical argument that the higher information asymmetry associated with intangible assets may increase the cost of staying listed on stock exchanges, particularly in periods of uncertainty (captured in this study by accounting fraud allegations targeting cross-listed firms). The results have important implications for corporate managers, capital market participants and policymakers. Practical implications Policymakers and standard setters must continue to work to improve the accounting regulations of intangible assets and to promote the adoption of global accounting standard across both emerging and advanced economies. Originality/value The study exploits a unique natural experimental setting to explore why cross-listed firms delist. The underlying theoretical framework to explain delisting is new. This framework captures the role of information asymmetry, uncertainty and alternative financing in explaining the cost and benefits of remaining listed on a foreign market.
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Marosi, András, and Nadia Massoud. "Why Do Firms Go Dark?" Journal of Financial and Quantitative Analysis 42, no. 2 (June 2007): 421–42. http://dx.doi.org/10.1017/s0022109000003331.
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AbstractIn recent years, a number of firms and banks have decided to “go dark,” i.e., deregister with the Securities and Exchange Commission and delist from the major exchanges despite having a large number of outside shareholders. This paper seeks to answer two important questions: Why do firms choose to go dark? What are the consequences for shareholders? We find that firms with fewer valuable growth opportunities, greater insider ownership, lower institutional ownership, higher leverage, and lower market momentum are more likely to go dark. Furthermore, the cost of regulatory compliance is a driving force behind the going dark phenomenon.
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Prastyo, Dedy Dwi, Yurike Nurmala Rucy, Advendos D. C. Sigalingging, Suhartono Suhartono, and Soo-Fen Fam. "Micro and Macro Determinants of Delisting and Liquidity in Indonesian Stock Market: A Time-Dependent Covariate of Survival Cox Approach." MATEMATIKA 34, no. 3 (December 31, 2018): 73–81. http://dx.doi.org/10.11113/matematika.v34.n3.1140.
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Coxmodel is popular in survival analysis. In the case of time-varying covariate; several subject-specific attributes possibly to change more frequently than others. This paper deals with that issue. This study aims to analyze survival data with time-varying covariate using a time-dependent covariate Cox model. The two case studies employed in this work are (1) delisting time of companies from IDX and (2) delisting time of company from LQ45 (liquidity index). The survival time is the time until a company is delisted from IDX or LQ45. The determinants are eighteen quarterly financial ratios and two macroeconomics indicators, i.e., the Jakarta Composite Index (JCI) and BI interest rate that changes more frequent. The empirical results show that JCI is significant for both delisting and liquidity whereas BI rate is significant only for liquidity. The significant firm-specific financial ratios vary for delisting and liquidity.
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Derouiche, Imen, Syrine Sassi, and Narjess Toumi. "The control-ownership wedge and the survival of French IPOs." Journal of Applied Accounting Research 19, no. 2 (May 14, 2018): 271–94. http://dx.doi.org/10.1108/jaar-02-2017-0027.
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Purpose The purpose of this paper is to investigate the effect of the control-ownership wedge of controlling shareholders (excess control) on the survival of French initial public offerings (IPOs). Design/methodology/approach This paper studies a large sample of 434 French IPOs. The empirical analysis uses the Cox proportional hazard and accelerated-failure-time models. Data are manually gathered from IPO prospectuses. Findings The findings support a positive relation between the control-ownership wedge and IPO survival time, indicating that survival is more likely in firms with high excess control levels. This result is consistent with the view that controlling shareholders with a large control-ownership wedge have incentives to preserve their private benefits of control by increasing firm survival chances. The findings also show that older IPOs are more likely to survive, while riskier and underpriced IPOs are more likely to delist. Practical implications The results provide a better understanding of the role of excess control in IPO survival. They also enrich the debate on the efficiency of the one-share-one-vote rule. Originality/value The research provides new insights into the role of agency conflicts in IPO survivability. In particular, it explores the effect of dominant shareholders with a control-ownership wedge on survival time.
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Liu, Shinhua, John D. Stowe, and Ken Hung. "Why U.S. firms delist from the Tokyo stock exchange: An empirical analysis." International Review of Economics & Finance 24 (October 2012): 62–70. http://dx.doi.org/10.1016/j.iref.2011.12.001.
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Ghosh, Aloke (Al), and Charles Y. Tang. "Auditor Resignation and Risk Factors." Accounting Horizons 29, no. 3 (September 1, 2015): 529–49. http://dx.doi.org/10.2308/acch-51074.
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SYNOPSIS Although auditor litigation risk is considered as a leading explanation for auditor resignations, audit risk and business risk might also trigger resignations. Auditor litigation risk is defined as the risk of the auditor being involved in a lawsuit, audit risk is defined as the risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated and, finally, business risk is defined as the risk associated with the client's survival and profitability. Because the three risk factors are not mutually exclusive, we examine their relevance and incremental importance using measures from the pre- and post-resignation periods. Using summary indices from the pre-resignation period, we find that all of the three ex ante risk indices are incrementally important for resignations, especially when the predecessor auditor is a Big 4 firm. Because the ex ante risk factors are prone to measurement errors and are less likely to capture the auditor's proprietary information about the client, we analyze data from the post-resignation period when the auditor's proprietary information is likely to become publicly known. We find that within a three-year period following an auditor's resignation, clients are more likely to (1) be involved in class-action lawsuits (ex post litigation risk), (2) have internal control problems (ex post audit risk), and (3) to be delisted from a national stock exchange (ex post business risk). Our research demonstrates that auditors consider all three risk factors, and not just litigation risk, in resignation decisions.
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Cai, Kelly, Heiwai Lee, and Magali Valero. "The roles of the information environment and the stock price performance of foreign firms in their decision to delist from U.S. exchanges." Journal of Multinational Financial Management 47-48 (December 2018): 1–13. http://dx.doi.org/10.1016/j.mulfin.2018.09.002.
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Sandy, Moriah, Jayme N. Carter-Franklin, Jessica D. Martin, and Alison Butler. "Vanadium bromoperoxidase from Delisea pulchra: enzyme-catalyzed formation of bromofuranone and attendant disruption of quorum sensing." Chemical Communications 47, no. 44 (2011): 12086. http://dx.doi.org/10.1039/c1cc15605e.
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Eisdorfer, Assaf. "Delisted Firms and Momentum Profits." SSRN Electronic Journal, 2006. http://dx.doi.org/10.2139/ssrn.599373.
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Khuong, Nguyen Vinh, and Dinh Thi Thu Thao. "The impact of capital structure choice on firm’s financial performance: An empirical analysis of delisted firms in Viet Nam." HCMCOUJS - ECONOMICS AND BUSINESS ADMINISTRATION 1, no. 1 (March 9, 2020). http://dx.doi.org/10.46223/hcmcoujs.econ.en.6.2.122.2016.
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The purpose of this study is to examine the impact of capital structure choice on firm’s financial performanceof delisted companies on the stock market. Based on the data collected from 80 companies delisted from Vietnam stock markets (HNX and HOSE) in the period from 2012 to 2015, using quantitative research methods, we find a correlation between the capital structure and the financial performance of the firms. The study results have some implications for investors and managers in making decisions to optimize their financial performance.
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Akande, Adesola Adebayo. "Nexus Of Liquidity Management And Corporate Business Failures In Non –Financial Sectors’ A Case Of Nigeria." European Journal of Business and Management Research 4, no. 5 (October 14, 2019). http://dx.doi.org/10.24018/ejbmr.2019.4.5.93.
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This paper examined the imperativeness of liquidity management – a key survival strategy of listed companies on the Nigeria Stock Exchange Markets and retrospectively assessed the salient variables on delisted corporate firms in Nigeria. Data were randomly collected from ten companies each from 114 listed and 82 delisted companies on the Nigeria stock exchange market records from January 2016 to 31st December, 2018 - healthy listed companies and 2006 -2008 for delisted records of failed companies. In all, twenty companies were analysed with two-tailed test using a significance level of 0.05 to test the possibility of the relationships, The existence of a positive relationship between liquidity management and profitability of corporate firms in Nigeria were established as the result of the study showed that adequate liquidity management spurs rapid cash growth, effective operating activities and profit making propensity of corporate healthy businesses which invariably were lacking in the delisted companies and resulted into eventual failure. Also, a higher cash flow from operations reduce the chance of a firm growing resulting into eventual liquidation. Cash flow from investing activities is however seen as a factor that exert a positive influence generally on corporate businesses in Nigeria. The study concluded that ill management of business liquidity is the major cause of failure of corporate businesses in developing economy and as such cash flow from operations, investments and financing activities of a firm should be adequately monitored by the company managers, investors, creditors and suppliers and even the government to forestall financial distress of companies in developing economy.
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Muigai, Robert Gitau, and Tabitha Nasieku. "WORKING CAPITAL MANAGEMENT AND FINANCIAL DISTRESS OF NON-FINANCIAL COMPANIES LISTED AT THE NAIROBI SECURITIES EXCHANGE." European Journal of Economic and Financial Research 5, no. 1 (May 31, 2021). http://dx.doi.org/10.46827/ejefr.v5i1.1073.
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Financial distress is a common global phenomenon among the corporate entities. Locally, there is overwhelming evidence of firms that have undertaken financial restructuring, delisted from the exchange market, gone into receivership and subsequently liquidated on account of financial distress. This study therefore set out to examine the way in which management of working capital affects financial distress of non-financial firms listed at the Nairobi Securities exchange. In fulfilling this objective, the study sought to establish how cash management, inventory management and accounts receivables management effects financial distress of non-financial firms listed at Nairobi Securities Exchange. The free cash flows theory, Precautionary motive theory, financing advantage theory and liquidity theory formed the theoretical basis of the study. The study adopted longitudinal research design and collected secondary data over ten years period (2009-2018) from a census of the 40 non-financial firms listed in Nairobi Securities exchange. Descriptive statistical analysis was used to obtain the initial overview of the data collected. Inferential statistical analysis was undertaken using the F and t-tests at 95% confidence level. The study found that cash management had a positive and significant effect on the firms’ distress index. Further, the study revealed that inventory holding period was negatively and significantly related to the firms’ financial distress index. The study also showed that suppliers’ payment period had a positive and significant effect on financial distress indicator. The study however depicted a negative but insignificant relationship between receivables period and financial distress. The study recommended that the management of non-financial listed firms should ensure appropriate management of working capital components in order to guard against instances of corporate financial distress
JEL: O15; J24; L20
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Wijaya, Liliana Inggrit. "STRATEGI MERGER PADA ERA KRISIS: ASPEK SINERGI JEJARING BISNIS." Journal of Management and Business 5, no. 2 (September 1, 2006). http://dx.doi.org/10.24123/jmb.v5i2.93.
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Globalization is a great challenging for the countries that still hard effort against economic crises. Requirement to be professional for facing competition is an absolute factor, but in the other hand they didn't find the solution way to be surviving out from the crises. In the middle of 1997, it was the beginning Indonesian crises and also the impact of the crises is still continuing until now. Gross Domestic Income in the 1998 slightly goes down 59% if comparing with the beginning of 1997, similarly for the inflation rate and Rp/US$ exchange rate slight}/goes up to 76% and 255%, whereas the condition didn't yet recovery until 2002. Economic crises affects directly the corporate performance, as written in Bisnis Indonesia (1998): economic crises is driven by monetary crises in the middle of previous year (1997) had been cutting performance of both private and public corporate with very dramatically.With the condition like that, very difficult for company to survive even still little number can, but by the fact looked that many company have been collapsed or delisted. Therefore, they must be done immediately to become efficient by consolidation through merger as a strategic step to maintenance their firm value. The target of merger is obtaining the synergy in term of the competitive advantage and strengthening to survive. From 1997 to 2002 was listed 38 public firms which had acted merger activities included horizontal (same business line), vertical (supplier and customer), congeneric (different business line but m the same industry) and conglomerate diversification (unrelated business). These merger are spread in the many kinds of sectors and the most are in the consumer goods sector as 9 companies, and the least is in the Agriculture sector, only one.The result of this research proved that the strategic ways of merger have significant positive relationship toward firm value, in the other words the financial performance after merger is greater than before. If the financed of these merger by equity (79.5%), the effect is greater than financed by debt instrument (61.6%).
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Le, Nhan, Duc Duy Nguyen, and Vathunyoo Sila. "Does Shareholder Litigation Risk Cause Public Firms to Delist? Evidence from Universal Demand Laws." SSRN Electronic Journal, 2019. http://dx.doi.org/10.2139/ssrn.3382805.
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Brogaard, Jonathan, Nhan Le, Duc Duy Nguyen, and Vathunyoo Sila. "Does Shareholder Litigation Risk Cause Public Firms to Delist? Evidence From Securities Class Action Lawsuits." SSRN Electronic Journal, 2019. http://dx.doi.org/10.2139/ssrn.3559949.
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Boot, Arnoud W. A., Radhakrishnan Gopalan, and Anjan V. Thakor. "Market Liquidity, Managerial Autonomy and the Push for Privacy: Why do Publicly-Listed Firms Delist?" SSRN Electronic Journal, 2005. http://dx.doi.org/10.2139/ssrn.681985.
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"Car Sharing Versus Car Ownership: An Exploratory Examination in India." International Journal of Innovative Technology and Exploring Engineering 8, no. 11S (October 11, 2019): 541–47. http://dx.doi.org/10.35940/ijitee.k1091.09811s19.
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Sharing economy is a relatively recent development in emerging economies such as India.Sharing economy has been conceptualized to include integrated collaboration in peer to peer commercial exchange of mostly underutilized goods and services for a fee, on a non-ownership basis (Altinat and Taheri, 2019)[1]; a business model consisting of a firm, primarily a service enabler such as Airbnb that acts as an intermediary between the supplier and customers of such goods and services (Kumar, et al, 2018); often referred to as collaborative consumption facilitated by online platforms (Guyader, 2018) [2]. While enjoyment and economic reward in terms of cost savings have been reported in studies as motivators for the use of such access-based services (Lee et al., 2018) [3], collaborative consumption has also been reported to being considered as an alternative ecological mode of consumption (Gopalakrishnanand Matthews,2018) [4].The two prime factors: supply-side flexibility and technology innovations have been enabling the steep growth of peer-to-peer platforms predominantly. The process of market entry for suppliers has been streamlined effectively by the technology innovations and has also made possible the searchable listings for the consumers resulting in keeping the overheads low and intact. The supply-side flexibility is yet another milestone achievement in terms of these shared platform which enables the Uber drivers to add or remove themselves from the available supply of drivers by a mere swipe of their mobile app. The same is the option for the provider who can voluntarily list or delist the offerings of their goods or services as per their wish. As an optimum solution to these problems, online shopping portals provide customers with reliable replacement policies and often refund cash in case of dissatisfaction.