Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 224-243 |
| Number of pages | 20 |
| Journal | International Journal of Accounting & Information Management |
| Volume | 27 |
| Issue number | 2 |
| Early online date | 24 Apr 2019 |
| DOIs | |
| Publication status | Published - 7 May 2019 |
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Keywords
- Voluntary delisting
- intangible assets
- information asymmetry
- US stock exchange
- China
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Intangible investments and voluntary delisting. / Agyei-Boapeah, Henry; Wang, Yuan; Tunyi, Abongeh A; Machokoto, Michael; Zhang, Fan.
In: International Journal of Accounting & Information Management, Vol. 27, No. 2, 07.05.2019, p. 224-243.Research output: Contribution to journal › Article › Research › peer-review
TY - JOUR
T1 - Intangible investments and voluntary delisting
AU - Agyei-Boapeah, Henry
AU - Wang, Yuan
AU - Tunyi, Abongeh A
AU - Machokoto, Michael
AU - Zhang, Fan
PY - 2019/5/7
Y1 - 2019/5/7
N2 - 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.
AB - 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.
KW - Voluntary delisting
KW - intangible assets
KW - information asymmetry
KW - US stock exchange
KW - China
UR - http://www.mendeley.com/research/intangible-investments-voluntary-delisting-mass-exodus-chinese-firms-stock-exchanges
UR - http://www.mendeley.com/research/intangible-investments-voluntary-delisting
UR - https://pure.northampton.ac.uk/en/publications/c2739cde-3684-482c-aae4-0d41273161c3
U2 - 10.1108/IJAIM-12-2017-0146
DO - 10.1108/IJAIM-12-2017-0146
M3 - Article
VL - 27
SP - 224
EP - 243
JO - International Journal of Accounting & Information Management
JF - International Journal of Accounting & Information Management
SN - 1834-7649
IS - 2
ER -