Delistings of Secondary Listings : Price and Volume Effects

Item Type Journal paper
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.
Authors Pfister, Matthias & von Wyss, Rico
Journal or Publication Title Financial Markets and Portfolio Management
Language English
Subjects business studies
HSG Classification contribution to scientific community
Refereed Yes
Date 1 December 2010
Publisher Springer
Place of Publication Norwell, Mass.
Volume 24
Number 4
Page Range 395-418
Number of Pages 24
ISSN 1555-4961
ISSN-Digital 1555-497X
Publisher DOI
Depositing User Dr. Rico von Wyss
Date Deposited 19 Apr 2011 14:30
Last Modified 20 Jul 2022 17:05


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Pfister, Matthias & von Wyss, Rico (2010) Delistings of Secondary Listings : Price and Volume Effects. Financial Markets and Portfolio Management, 24 (4). 395-418. ISSN 1555-4961

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