Determinants of firm delisting on the Prague Stock Exchange

0371982 - NHU-C 2012 RIV CZ eng J - Journal Article
Fungáčová, Z. - Hanousek, Jan
Determinants of firm delisting on the Prague Stock Exchange.
Prague Economic Papers. Roč. 20, č. 4 (2011), s. 348-365. ISSN 1210-0455. E-ISSN 2336-730X
R&D Projects: GA ČR GA402/09/1595
Institutional research plan: CEZ:MSM0021620846
Keywords : stock market * delisting * transition economy
Subject RIV: AH - Economics
Impact factor: 0.256, year: 2011
http://www.vse.cz/pep/abstrakt.php3?IDcl=404

This research investigates the emergence of stock market in the Czech Republic. We use Czech mass privatization as an experiment that allows us to analyze under what conditions a viable stock market arises. On the Prague Stock Exchange (PSE), unlike its counterparts in Poland or Hungary, exceptionally large amounts of shares were delisted e.g. excluded from public trading soon after trading at this market began in 1993. We estimate the determinants of shares delisting analyzing the period 1993-2004. Using firm-level data on listed and delisted companies we show that it was possible to prevent massive delisting if certain pre-privatization and privatization characteristics of the companies had been taken into account when deciding which companies to place on the stock exchange for public trading following the mass privatization.
Permanent Link: http://hdl.handle.net/11104/0205383