Abstract
From 1990 through 2005 18 German firms listed their shares in the U.S. in the hopes of increasing their market values and lowering their cost of capital. We examine whether these anticipated benefits materialized and find the companies obtained no valuation benefits from their listings. The absence of valuation benefits may explain why 13 firms have delisted since 2006 once Rule 12h-6 was adopted that enabled firms to delist without having to continue to file reports with the SEC. Other factors were the passage of SOX, changes in German corporate governance laws and the emergence of alternative trading platforms.
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