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The Effects of Delisting on Liquidity and Volatility: A case study on Nordic companies
Jönköping University, Jönköping International Business School, JIBS, Business Administration.
Jönköping University, Jönköping International Business School, JIBS, Business Administration.
2016 (English)Independent thesis Advanced level (degree of Master (One Year)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Cross-listing has for decades been an instrument for entering a new market with the intention of gaining extra trading volume and increased liquidity. Recently, we have observed a significant decrease in newly issued ADR’s which has lead us to wonder whether this instrument is still an efficient option. According to theory, abnormal returns can be achieved when cross-listing on a segmented market. Thus, the trend of delisting should be a result of markets becoming more integrated with each other. The aim of this thesis is to examine if the Nordic markets and the U.S & London markets are integrated enough to motivate not maintaining a dual listing.

This will be done by analyzing the effects on Volatility and Liquidity of the Nordic companies after they have delisted from the international exchange. Conclusions are drawn based on the theory of market integration, stating that if there is no significant change or difference in price the markets are integrated. 

 

Our results presented no significance in either liquidity or volatility after delisting from the international exchange for the majority of our sample. Even though the sample is statistically small, we have covered the majority of all companies that have delisted during this time. This has lead us to concluding that there is no longer any significant gains to receive as a Nordic company when cross-listing on either the U.S market or London market.

Place, publisher, year, edition, pages
2016. , 59 p.
Keyword [en]
Cross-listing, Delisting, Market integration, Liquidity, Volatillity, Stock markets
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-30227ISRN: JU-IHH-NAA-2-20160066OAI: oai:DiVA.org:hj-30227DiVA: diva2:933226
Subject / course
IHH, Business Administration
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Available from: 2016-06-22 Created: 2016-06-03 Last updated: 2016-06-22Bibliographically approved

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CiteExportLink to record
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Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
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  • asciidoc
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