We model a firm's optimal time to voluntarily delist from an exchange. Three key parameters determine optimal delisting time: firm's growth rate and business risk combined with total costs associated with staying public. Our hazard rate estimations confirm that the aforementioned key variables are significant drivers of delisting time. Rising political and regulatory uncertainty are two channels through which these parameters get shocked, which changes the optimality of delisting. After classifying firms into ones that took an optimal versus those that took a non-optimal decision to delist, we show that stock market reacts differently to each type of delisting announcement.
The webinar will be in English.
Date: June 7, 2021 (Monday), 17.00 (GMT+3)
Title: The Timing of Voluntary Delisting
Zoom Meeting ID: 874 8933 6710
Zoom Link: https://us02web.zoom.us/j/87489336710
About the speaker: Gönül Çolak is a Professor of Finance at Hanken School of Economics, where he is the Finance PhD Director. Recently he was a visiting scholar at Stern School of Business in New York University and at Turkish Central Bank's Istanbul School of Central Banking in Turkey. Previously he held academic positions at Florida State University and Wichita State University. He has publications in high-quality journals such as Review of Financial Studies, Journal of Financial Economics, Journal of Financial and Quantitative Analysis, Review of Accounting Studies, Journal of Financial Intermediation, and Journal of Corporate Finance. His academic work focuses on political uncertainty, corporate finance, and financial econometrics. His research interests cover variety of topics such as equity issuance, investor relations, corporate restructurings, financial intermediation, capital structure, CEO turnover, cryptocurrencies, and cash holdings. According to Scopus his academic work has been cited more than 400 times. He currently sits in the board of several organizations such Nordic Finance Network (Nordic countries), Graduate Studies in Finance (Finland), and Universitas Sebelas Maret (UNS - Indonesia).