Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/208686 
Year of Publication: 
2008
Series/Report no.: 
PhD Series No. 1.2008
Publisher: 
Copenhagen Business School (CBS), Frederiksberg
Abstract: 
We study the impact of stock market valuations on delistings from European stock exchanges 1996-2004. Previous research has found that mergers and acquisitions (M&A) occur more often when market valuations are high. This is paradoxical since it implies that companies are more likely to engage in M&A when it is most expensive. In accordance with prior research we find that delistings by mergers and acquisitions are more likely when industry market-to-book values (q) are high. In contrast, we find no effect of industry q on going private transactions. The data also suggest that M&A are more likely to take place in bull years while going private transactions are relatively more likely in bear years. Our study is the first comprehensive study of delistings in Europe and the first study to demonstrate that going private transactions appear to be driven by different causal mechanisms than M&A.
Persistent Identifier of the first edition: 
ISBN: 
9788759383469
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Doctoral Thesis

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