367Delisting Costs and Corporate Mobility in Europe
-
Jonathan Chan
and
Carsten Gerner-Beuerle
Abstract
There is considerable variation among capital markets in the frequency of voluntary and involuntary delistings, which has been attributed by some commentators to differences in the regulatory framework governing delisting decisions. However, there have been few systematic attempts to map these differences across legal systems and quantify the regulatory costs of delistings. This article analyses delisting regimes of major EU jurisdictions and several non-EU countries and develops indices that capture delisting costs. It shows that the delisting regimes of some EU Member States are prohibitively costly. The article then considers whether such delisting regimes are consistent with EU free movement rights. It concludes by critically evaluating a menu of policy options to ensure that delisting rules facilitate corporate mobility and an efficient allocation of capital in the EU.
Acknowledgment
We would like to thank participants of the Delisting of Stock Corporations in Europe and Beyond conference at the University of the Aegean in June 2023, organised by Prof. Rüdiger Veil and Prof. Vassilios Tountopoulos. We are indebted to the conference participants for helpful comments and for sharing their delisting questionnaires, without which this research would not have been possible. We also wish to thank participants at the Oxford Business Law Workshop and the 17th European Company and Financial Law Review Symposium for constructive feedback. All errors are our own.368
© 2024 Walter de Gruyter GmbH, Berlin/Boston
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- 269Redefining the Conceptual Ground of Corporate Governance Regulation
- Legal Transplants of Shareholder Voting Rights in the European Union – Evidence from the Past, Consequences for the Future
- Determining Economic Loss Due to Misrepresentations on the Stock Market Using Forward Casting
- Delisting Costs and Corporate Mobility in Europe
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- Cross-border Mobility of Insolvent Companies Within the European Union
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Articles in the same Issue
- Frontmatter
- Frontmatter
- 269Redefining the Conceptual Ground of Corporate Governance Regulation
- Legal Transplants of Shareholder Voting Rights in the European Union – Evidence from the Past, Consequences for the Future
- Determining Economic Loss Due to Misrepresentations on the Stock Market Using Forward Casting
- Delisting Costs and Corporate Mobility in Europe
- 398Regulation of Takeover Bids in a Global Context
- Cross-border Mobility of Insolvent Companies Within the European Union
- The Assurance of Corporate Sustainability Reports and the Renewed Role of Certified Auditors
- The Sanctions Principles-Based Regulation: A Blueprint for a New Approach for the EU Sanctions Policy (Part II)
