Can European Companies Escape U.S. Listings?
Massachusetts Institute of Technology, Sloan School of Management, Students; Brookings Institution
Harvard Law and Economics Discussion Paper No. 464
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
Date posted: April 25, 2004