The Timing of Voluntary Delisting

Alcino Azevedo, Gonul Colak, Izidin El Kalak, Radu Tunaru

Research output: Preprint or Working paperWorking paper


We model a firm’s optimal time to voluntarily delist from an exchange. Three key parameters determine optimal delisting time: firm’s growth rate and business risk combined with total costs associated with staying public. Our hazard rate estimations confirm that the aforementioned key variables are significant drivers of delisting time. Rising political and regulatory uncertainty are two channels through which these parameters get shocked, which changes the optimality of delisting. After classifying firms into ones that took an optimal versus those that took a non- optimal decision to delist, we show that stock market reacts differently to each type of delisting announcement.
Original languageEnglish
Publication statusPublished - 22 Apr 2021


  • Voluntary Delisting
  • Delist Timing
  • Political Uncertainty
  • Real Options
  • Survival Analysis


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