Analyzing Factors Contributing to International Firms Requesting to Leave U.S. Exchanges.
详细信息
文摘
The purpose of this quantitative,nonexperimental study was to assess whether passage of Sarbanes Oxley Act of 2002 (SOX) legislation had an impact on executives of international firms voluntarily requesting to leave the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotations (NASDAQ) from 1997 through 2007. Members of Congress enacted SOX with the objective of protecting shareholders' rights,preventing corruption,and making investing safer. The defined population of the study consisted of 139 international firms whose executives decided voluntarily to terminate from the NYSE and NASDAQ from 1997 through 2007,and a matched pair of 139 international firms registered with the Securities and Exchange Commission (SEC) as of December 31,2007. The Center for Research in Security Prices database was used to extract yearly data on international firms that delisted voluntarily. Financial data for individual firms were obtained from the SEC EDGAR database and the Mergent Online database. Chi-square analysis was performed to provide quantitative support to study findings. Results of the chi-square analysis were statistically significant,chi²； (1,n ＝ 139) ＝ 76.3,p ＜ .05,indicating there was a significant difference in the number of international firms that voluntarily delisted after the passage of SOX,as compared to those that voluntarily delisted before the passage of SOX. The regression model indicated that yearly profitability ratio was the strongest predictor of voluntary delisting. Findings of two-way ANOVAs used to measure changes in yearly profitability ratios,firm size,and leverage ratios for international firms indicated no significant relationship between SOX legislation and ADR listing status in terms of yearly profitability ratio,firm size,and leverage ratio. A statistically significant main effect on ADR listing status in terms of yearly profitability ratio F (1,274) ＝ 10.33,p ＜ .01,was found. The chi-square analysis for corporate governance revealed no significant relationship. This research was intended to aid in understanding which international firms will delist,relying on the intent of SOX legislation,and the underlying motivations of international firms using bonding and signaling theories.