Why U.S. Firms Delist from the Tokyo Stock Exchange: An Empirical Analysis

Posted: 16 Sep 2013

See all articles by Shinhua Liu

Shinhua Liu

University of Southern Mississippi

Ken Hung

Independent

John D. Stowe

Ohio University

Date Written: 2012

Abstract

We investigate possible reasons for voluntary delistings by U.S. firms from the Tokyo Stock Exchange from 1982 to 2005. We find that the small shareholder base, as measured by low turnover, for U.S. stocks in Japan helps to explain the voluntary foreign delistings. This finding is consistent, from the converse, with the foreign listing literature, which cites enhanced shareholder base and liquidity as two of the reasons for foreign listing. Further investigations rule out the sample firms’ financial and operating performances, including the percentage of export sales, as a likely reason for the low turnover and, thus, the voluntary foreign delistings.

Keywords: Reasons, Voluntary foreign listings, Tokyo Stock Exchange, U.S. firms

JEL Classification: G12, G14, G15, G18

Suggested Citation

Liu, Shinhua and Hung, Ken and Stowe, John D., Why U.S. Firms Delist from the Tokyo Stock Exchange: An Empirical Analysis (2012). International Review of Economics & Finance, Vol. 24, p. 62, October 2012, Available at SSRN: https://ssrn.com/abstract=2325921

Shinhua Liu (Contact Author)

University of Southern Mississippi ( email )

College of Business
Hattiesburg, MS 39402

Ken Hung

Independent ( email )

John D. Stowe

Ohio University ( email )

640 Copeland
Athens, OH 45701
United States
(434) 409-0239 (Phone)

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