Deregister & Terminate
An analysis of foreign firms listing shares within the United States in efforts to raise capital with as little financial cost as possible to maximize growth opportunities. However, to a time growth opportunities no longer exist and the foreign firms listings loose value, causing corporate to respond by simply deregistering all together. The following evidence in the form of statistical results proves the hypothesis of foreign firms being more likely to deregister and go home, directly impacted by governmental ruling.
Specifically are hypothesis is about a select group made up of foreign firm’s and the rationale for future potential motivations that result in significant economic consequences, depending on a government ruling. This select group of 59 foreign firms characterized as firms experiencing significantly slower growth in stock compared to previous foreign firms not affected by the security and exchange commission experienced a ruling changing the ease of which this newly selected group of firms can deregister. Simply after critical research and evaluation the statistical results prove this new group of foreign firms impacted by this new government ruling increases the deregistering of foreign firms (Doidge, Karolyi, and Stulz, 2008).
The following percentages from Fernandes, Lel, and Miller (2007) show that the average abnormal return through this governmental rule change impacting the foreign firms. The impact of this study yields the following results as follows: -0.5% and is statistically insignificantly different from zero, but the median abnormal return of -0.1%, though smaller, is significant. For over-the-counter tra ...