Wealth and liquidity effects of stock delistings: empirical evidence from the stock exchanges of Singapore and Malaysia

Authors: Meera A.K.; Tripathy N.; Redfearn M. R.

Source: Applied Financial Economics, Volume 10, Number 2, 1 April 2000 , pp. 199-206(8)

Publisher: Routledge, part of the Taylor & Francis Group

Key:

- Free Content

- New Content

- Subscribed Content

- Free Trial Content

Abstract:

This paper examines the wealth effects of stock delistings by specifying a return-generating model with GARCH errors. Using dual listed stocks between the stock exchanges of Malaysia and Singapore, we found delistings to decrease firm value. The above wealth effect seems to be related to how actively the stocks are traded on the foreign exchange. In addition, however, this paper examines if delistings can bring about net benefit for an economy as a whole. Consistent with national interests hypothesis, we found delistings to bring about mixed effects that could well be positive.

Language: English

Document Type: Research article

The full text electronic article is available for purchase. You will be able to download the full text electronic article after payment.

$38.34 plus tax Refund Policy