Intangible investments and voluntary delisting: mass exodus of Chinese firms from US stock exchanges

Agyei-Boapeah, H., Wang, Y., Tunyi, A. A., Machokoto, M. and Zhang, F. (2019) Intangible investments and voluntary delisting: mass exodus of Chinese firms from US stock exchanges. International Journal of Accounting & Information Management. 1834-7649.

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Item Type:	Article
Abstract:	Drawing on a cost-benefit perspective, this paper explores the relation between information asymmetry and the decision to delist from stock exchanges during periods of uncertainty. Specifically, it investigates the role of firms’ intangible investments and the availability of alternative sources of finance on the decision to delist from foreign stock markets. There is a significant positive relationship between investments in intangible assets and firms’ decision to delist. Moreover, the evidence suggests that the positive intangibles-delisting nexus is accentuated by the availability of alternative sources of financing. Collectively, the results are consistent with the theoretical argument that the higher information asymmetry associated with intangible assets may increase the cost of staying listed on stock exchanges, particularly, in periods of uncertainty (captured in this study by accounting fraud allegations targeting cross-listed firms). The results have important implications for corporate managers, capital market participants, and policy makers.
Uncontrolled Keywords:	Voluntary delisting, intangible assets, information asymmetry, US stock exchange, China
Creators:	Agyei-Boapeah, Henry, Wang, Yuan, Tunyi, Abongeh A, Machokoto, Michael and Zhang, Fan
Faculties, Divisions and Institutes:	Faculties > Faculty of Business & Law > Accounting & Finance
Date:	2019
Date Type:	Publication
Journal or Publication Title:	International Journal of Accounting & Information Management
Number of Pages:	47
Language:	English
DOI:	https://doi.org/10.1108/IJAIM-12-2017-0146
ISSN:	1834-7649
Status:	Published / Disseminated
Refereed:	Yes
URI:	http://nectar.northampton.ac.uk/id/eprint/10551

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