Can European Companies Escape U.S. Listings?

Abstract:     
European companies would like to deregister from the SEC system in light of Sarbanes Oxley. However, this takes at least 18 months for a foreign company listed on a US market, and is virtually impossible for a foreign company that has made a public offering in the US. Therefore, the SEC should adopt a geographic going private rule allowing a foreign issuer to opt out of the SEC system if the foreign issuer makes an offer to buy all shares of its US holders at a fair price as determined by an independent appraiser.

Number of Pages in PDF File: 6

Keywords: Sarbanes Oxley, SOX, securities regulation

JEL Classification: F21, G15, G38

working papers series