Konno, Y and Itoh, Y (2018) Why do listed companies delist themselves voluntarily? An empirical study of the Tokyo stock exchange and the construction and real estate industries. Journal of Financial Management of Property and Construction, 23(2), pp. 152-169. ISSN 1366-4387
Abstract
Purpose: This study aims to analyse, from a corporate finance and governance perspective, the reasons why managers decide to delist their companies from a stock exchange. On the basis of the five hypotheses of voluntary delisting, this study examines why listed companies delist themselves voluntarily in the construction and real estate sectors. Design/methodology/approach: By using actual data to examine contractors and real estate companies listed on the Tokyo Stock Exchange between 2004 and 2014, this study analyses whether these companies delist themselves voluntarily. The pooled binary logit model is used as the statistical method. Findings: In both the construction and real estate sectors, the concentration of shareholders has a significantly positive effect on voluntary delisting, thus supporting the transfer of wealth effect hypothesis. In construction, market capitalisation has a significantly negative effect on voluntary delisting, thus supporting the maintenance cost reduction hypothesis. In the real estate sector, the ratio of market capitalisation to total assets has a significantly negative effect on voluntary delisting, thus supporting the undervalue elimination hypothesis. Originality/value: By comparing the construction and real estate sectors, this study reveals both unique and common reasons for voluntary delisting in each sector. It also offers valuable insights to managers, regulators setting standards in securities markets and investors.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | corporate finance; corporate governance; delisting; real estate industry |
| Index terms: | methodology, corporate governance, manager, Tokyo, corporate finance, real estate, empirical study, statistical method, markets, maintenance cost, investor, governance, regulator |
| Subjects: | real estate economics, economic analysis, business, practitioner, sociology, statistical analysis, research methods, financial management, Geography |
| Topics: | Urban Studies, Business Strategy, Geographical Context, Research Practice, Stakeholder Management, Roles and Professions, Governance |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here