The Timing of Voluntary Delisting

48 Pages Posted: 13 Jan 2020

See all articles by Izidin El Kalak

Izidin El Kalak

Cardiff Business School

Alcino Azevedo

Aston Business School

Radu Tunaru

University of Sussex

Date Written: December 23, 2019


We develop a theoretical real options model that advises firms on the timing of voluntary delisting. We apply this model to 2,358 U.S. listed firms (1980-2016) and classify them as listed (delisted) firms that should be listed (delisted), good decision (GD), and listed (delisted) firms which should be delisted (listed), bad decision (BD). We perform a survival analysis using a discrete-time duration-dependent hazard model, so as to investigate the effect of the firm’s characteristics on the likelihood of delisting, and examine the mean differences between the GD and BD samples. Most of the mean differences are statistically significant, which attests the economic rationale underlying our model. We highlight that the turnover, turnover growth and turnover volatility are largely neglected by the delisting literature, and conclude that these variables are however key determinants of voluntary delisting.

Keywords: Delist Timing; Real Options; Survival Analysis; Voluntary Delisting

JEL Classification: G12, G32, G34

Suggested Citation

El Kalak, Izidin and Azevedo, Alcino and Tunaru, Radu, The Timing of Voluntary Delisting (December 23, 2019). Available at SSRN: or

Izidin El Kalak (Contact Author)

Cardiff Business School ( email )

Aberconway Building
Colum Drive
Cardiff, CF10 3EU
United Kingdom

Alcino Azevedo

Aston Business School ( email )

Econ., Finance & Enterpreneurship
Aston Business School
Birmingham, B4 7ET
United Kingdom

Radu Tunaru

University of Sussex ( email )

Brighton, BN1 9SL
United Kingdom

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