Abstract

http://ssrn.com/abstract=1728803
 


 



Delistings of Secondary Listings: Price and Volume Effects


Rico Von Wyss


University of St. Gallen - Swiss Institute of Banking and Finance

Matthias Pfister


affiliation not provided to SSRN

October 12, 2010

Financial Markets and Portfolio Management, Vol. 24, No. 4, pp. 395-418, 2010

Abstract:     
Despite their growing importance in recent years, delistings of secondary listings have received very little attention. This article investigates whether a delisting is accompanied by any price or volume effects on the company’s primary exchange. We apply a standard event study methodology to analyze these effects. The total sample consists of 255 companies that either delisted from the SIX Swiss Exchange, the Sponsored Segment of the SIX, Deutsche Börse, or the Tokyo Stock Exchange. The results show no significant price effects, either around the announcement or around the effective delisting. Furthermore, the results vary considerably between subsamples. Prices tend to decline around announcement; however, the effect is not permanent. The effective delisting is preceded by declining prices, whereas the event itself has no influence. Overall, this initial decline appears to be permanent. In general, volumes seem to rise around the announcement as well as around the date of the delisting.

Keywords: Event Study, Secondary Listings, Delisting

JEL Classification: G12, G14, G39

Accepted Paper Series


Not Available For Download

Date posted: December 20, 2010  

Suggested Citation

von Wyss, Rico and Pfister, Matthias, Delistings of Secondary Listings: Price and Volume Effects (October 12, 2010). Financial Markets and Portfolio Management, Vol. 24, No. 4, pp. 395-418, 2010. Available at SSRN: http://ssrn.com/abstract=1728803

Contact Information

Rico Von Wyss (Contact Author)
University of Saint Gallen - Swiss Institute of Banking and Finance ( email )
Rosenbergstrasse 52
St. Gallen, CH-9000
Switzerland
Matthias Pfister
affiliation not provided to SSRN ( email )
Feedback to SSRN


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