Why do firms go dark? Causes and economic consequences of voluntary SEC deregistrations

Ascarelli, S., 2004. Citing Sarbanes, foreign companies flee U.S. exchanges. Wall Street Journal, September 20, C1. Basak, 1998, An equilibrium model with restricted stock market participation, Review of Financial Studies, 11, 309, 10.1093/rfs/11.2.309 Benninga, 2005, The timing of initial public offerings, Journal of Financial Economics, 75, 115, 10.1016/j.jfineco.2003.04.002 Blume, 1983, Biases in computed returns: an application to the size effect, Journal of Financial Economics, 12, 387, 10.1016/0304-405X(83)90056-9 Boehmer, E., Ljungqvist, A., 2004. On the decision to go public: evidence from privately held firms. NYU Working Paper. Botosan, 1997, Disclosure level and the cost of equity capital, The Accounting Review, 72, 323 Brown, 1985, Daily stock returns: the case of event studies, Journal of Financial Economics, 14, 3, 10.1016/0304-405X(85)90042-X Bushee, 2005, Economic consequences of SEC disclosure regulation, Journal of Accounting and Economics, 39, 233, 10.1016/j.jacceco.2004.04.002 Campbell, 1996, Understanding risk and return, Journal of Political Economy, 104, 298, 10.1086/262026 Coffee, 1999, The future as history: the prospects for global convergence in corporate governance and its implications, Northwestern University Law Review, 93, 641 DeAngelo, 1984, Going private: minority freezeouts and stockholder wealth, Journal of Law and Economics, 27, 367, 10.1086/467070 Demirguc-Kunt, 1998, Law, finance, and firm growth, Journal of Finance, 53, 2107, 10.1111/0022-1082.00084 Doidge, 2004, Why are foreign firms listed in the U.S. worth more?, Journal of Financial Economics, 71, 205, 10.1016/S0304-405X(03)00183-1 Doyle, 2007, Accruals quality and internal control over financial reporting, The Accounting Review, 82, 1141, 10.2308/accr.2007.82.5.1141 Easley, 2002, Is information risk a determinant of asset returns?, Journal of Finance, 57, 2185, 10.1111/1540-6261.00493 Engel, 2007, The Sarbanes–Oxley Act and firms’ going-private decisions, Journal of Accounting and Economics, 44, 116, 10.1016/j.jacceco.2006.07.002 Financial Executives International, 2005. FEI survey on SOX Section 404 implementation. Frigo, M., Litman, J., 2004. Give my regrets to Wall Street. Harvard Business Review February, 43–51. Graham, 2005, The economic implications of corporate financial reporting, Journal of Accounting and Economics, 40, 3, 10.1016/j.jacceco.2005.01.002 Hail, 2006, International differences in cost of capital: do legal institutions and securities regulation matter?, Journal of Accounting Research, 44, 485, 10.1111/j.1475-679X.2006.00209.x Harris, J., Panchapagesan, V., Werner, I., 2006. Off but not gone: a study of Nasdaq delistings. Ohio State University Working Paper. Healy, 2001, Information asymmetry, corporate disclosure, and the capital markets: a review of the empirical disclosure literature, Journal of Accounting and Economics, 31, 405, 10.1016/S0165-4101(01)00018-0 Huddart, 2007, Information asymmetry and cross-sectional determinants of insider trading, Contemporary Accounting Research, 24, 195, 10.1506/0277-1110-4434-M627 Jensen, 1986, The agency costs of free cash flow: corporate finance and takeovers, American Economic Review, 76, 323 Jensen, 2002, Just say no to Wall Street, Journal of Applied Corporate Finance, 14, 41, 10.1111/j.1745-6622.2002.tb00447.x Kaplan, 1989, The effects of management buyouts on operating performance and value, Journal of Financial Economics, 24, 217, 10.1016/0304-405X(89)90047-0 Kaplan, 1989, Management buyouts: evidence of taxes as a source of value, Journal of Finance, 44, 611, 10.2307/2328773 Karolyi, 2006, The world of cross-listings and cross-listings of the world: challenging conventional wisdom, Review of Finance, 10, 99, 10.1007/s10679-006-6980-8 LaPorta, 2000, Investor protection and corporate governance, Journal of Financial Economics, 58, 3, 10.1016/S0304-405X(00)00065-9 Lehn, 1989, Free cash flow and stockholder gains in going private transactions, Journal of Finance, 44, 771, 10.2307/2328782 Leuz, 2007, Was the Sarbanes-Oxley Act of 2002 really this costly? A discussion of evidence from event returns and going-private decisions, Journal of Accounting and Economics, 44, 146, 10.1016/j.jacceco.2007.06.001 Leuz, 2000, The economic consequences of increased disclosure, Journal of Accounting Research, 38, 91, 10.2307/2672910 Leuz, 2003, Investor protection and earnings management: an international comparison, Journal of Financial Economics, 69, 505, 10.1016/S0304-405X(03)00121-1 Li, H., Pincus, M., Rego, S., 2008. Market reaction to events surrounding the Sarbanes–Oxley Act of 2002 and earnings management. Journal of Law and Economics, forthcoming. Lichtenberg, 1990, The effect of leveraged buyouts on productivity and related aspects of firm behavior, Journal of Financial Economics, 27, 165, 10.1016/0304-405X(90)90025-U Macey, J., O’Hara, M., Pompilio, D., 2004. Down and out in the stock market: the law and finance of the delisting process. Cornell University Working Paper. MacKinlay, 1997, Event studies in economics and finance, Journal of Economic Literature, 35, 13 Marosi, 2007, Why do firms go dark?, Journal of Financial and Quantitative Analysis, 42, 421, 10.1017/S0022109000003331 McKay, P., 2003. Though their stock is publicly held companies adopt a private mentality. Wall Street Journal July 28, C1. Merton, 1987, A simple model of capital market equilibrium with incomplete information, Journal of Finance, 42, 483, 10.2307/2328367 Nelson, S., 2003. Petition for commission action to require Exchange Act registration of over-the-counter equity securities, July 3. Newey, 1987, A simple positive semi-definite heteroskedasticity and autocorrelation consistent covariance matrix, Econometrica, 55, 703, 10.2307/1913610 Norton, 2004, Computing interaction effects and standard errors in logit and probit models, Stata Journal, 4, 154, 10.1177/1536867X0400400206 Ohlson, 1980, Financial ratios and the probabilistic prediction of bankruptcy, Journal of Accounting Research, 18, 109, 10.2307/2490395 Prabhala, 1997, Conditional methods in event studies and an equilibrium justification for standard event-study procedures, Review of Financial Studies, 10, 1, 10.1093/rfs/10.1.1 SEC, April 23, 2006. Final report of the advisory committee on smaller public companies. (Securities and Exchange Commission, Washington, DC). Welker, 1995, Disclosure policy information asymmetry and liquidity in equity markets, Contemporary Accounting Research, 12, 801, 10.1111/j.1911-3846.1995.tb00467.x Zhang, 2007, Economic consequences of the Sarbanes–Oxley Act of 2002, Journal of Accounting and Economics, 44, 74, 10.1016/j.jacceco.2007.02.002