Why Do Foreign Firms Leave U . S . Equity Markets ?

  title={Why Do Foreign Firms Leave U . S . Equity Markets ?},
  author={Craig Doidge and G. Andrew Karolyi},
Foreign firms terminate their Securities and Exchange Commission registration in the aftermath of the Sarbanes–Oxley Act (SOX) because they no longer require outside funds to finance growth opportunities. Deregistering firms’ insiders benefit from greater discretion to consume private benefits without having to raise higher cost funds. Foreign firms with more agency problems have worse stock-price reactions to the adoption of Rule 12h-6 in 2007, which made deregistration easier, than those… CONTINUE READING


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