Why Do Firms Go Dark? Causes and Economic Consequences of Voluntary SEC Deregistrations

By Christian Leuz, Alexander J. Triantis, Tracy Yue Wang. 2008

483 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/19df31c67637027be442b5ed4bdb99ed64bb07d8

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Citations in the corpus

Restraining Overconfident CEOs through Improved Governance: Evidence from the Sarbanes-Oxley Act (2015, unknown): “There is evidence suggesting that SOX might impose significant costs on some companies (see e.g., Iliev, 2010; Leuz et al., 2008).”
Global Accounting Convergence and the Potential Adoption of IFRS by the United States: An Analysis of Economic and Policy Factors (2009, background): “Recent evidence supports this notion (e.g., Aggarwal et al., 2005; Leuz et al., 2008a).”
Earnings Quality at Initial Public Offerings (2006, unknown): “(5)The design is mirrored in voluntary delistings (Leuz et al., 2006) and similar to cross-listings (Coffee, 1999).”
The Role of Corporate Social Responsibility (CSR) Information in Supply-Chain Contracting: Evidence from the Expansion of CSR Rating Coverage (2021, background): “First, we identify supplier contracts with listed corporate customers, as customer-supplier pairs are subject to higher visibility and public scrutiny when corporate customers are listed at a stock exchange (see e.g., Leuz et al., 2008).”
Externalities of Public Firm Presence: Evidence from Private Firms’ Investment Decisions (2013, unknown): “Prior research finds that SOX significantly increased the cost being public and served as a catalyst for firms to go private or deregister their common stock, thereby suspending their obligation to comply with SEC reporting requirements (Foley and Lardner, 2007; Leuz et al., 2008).”
Financial Reporting Frequency, Information Asymmetry, and the Cost of Equity (2012, unknown): “We find that firms with smaller size, worse market performance and higher leverage ratio are more likely to delist, consistent with Leuz et al. (2008). Furthermore, we find that firms reporting less than quarterly are more likely to delist in the mandatory switch period.”
How should the auditors be audited? Comparing the PCAOB Inspections with the AICPA Peer Reviews (2010, background): “In addition, many client firms delisted or went ‘‘dark’’ after the adoption of SOX (Engel et al., 2007; Leuz et al., 2008).”
The Economics of Disclosure and Financial Reporting Regulation: Evidence and Suggestions for Future Research (2015, background): “Leuz et al. (2008) show that there is a considerable number of public companies that deregister their securities from the SEC, cease to make periodic SEC filings, but continue to trade publicly in markets that do not require SEC filings.”
Going-Private Decisions and the Sarbanes-Oxley Act of 2002: A Cross-Country Analysis (2007, unknown): “Leuz et al. (2008) find a post-SOX increase in going dark, but”
The U.S. Listing Gap (2016, unknown): “…Brian Baugh, Andrei Gonçalves, Alan Kwan, and Xiaofei Zhao for excellent research assistance, to Francois DeGeorge, Gustavo Grullon, Charles Jones, Crocker Liu, Hamid Mehran, Vesa Puttonen, Jay Ritter, and Scott Yonker for valuable comments, and to Frank Hatheway (NASDAQ) for a useful conversation.”
Delisting Returns and Their Effect on Accounting-Based Market Anomalies (2007, unknown): “We regress future size-adjusted returns directly on current earnings while Sloan (1996) uses the Mishkin framework, which requires future earnings and therefore excludes a significant number of observations, including delisting firm-years. We also include firms traded on the NASDAQ, which are exclud”